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    Question

    An uncovered cost at the start of a year is Rs. 20,000.

    Full cash flow during the recovery year is Rs. 40,000, and years prior to full recovery are 3. Then what would be the payback period?
    A 4.5 years Correct Answer Incorrect Answer
    B 3.5 years Correct Answer Incorrect Answer
    C 4 years Correct Answer Incorrect Answer
    D 5 years Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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