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Cumulative cash flow is minus Rs 60,000 after year 2; year 3 inflow is Rs 90,000. Payback?

A2.67 years
B2.4 years
C3 years
D2.33 years
Answer & Solution
Correct answer: A. 2.67 years
Using ny plus n over p: 2 plus 60,000 divided by 90,000 equals 2.67 years.
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