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Rs 1,000 is invested, returning Rs 500 at the end of years 1 and 2. Payback?

A1 year
B1.5 years
C2 years
D2.5 years
Answer & Solution
Correct answer: C. 2 years
Two inflows of 500 add up to the 1,000 outlay at the end of year 2.
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