Q470
An uncovered cost at start of year is Rs 300, full cash flow during recovery year is Rs 650 and prior years to full recovery is 4 then payback would be
A.
3.46 years
B.
2.46 years
C.
5.46 years
D.
4.46 years
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Upto 4 years full cost recovered, only left portion is Rs 300Cash flow during current year = Rs 650
So 300 recovered with in period of 300/650 = 0.4615
Than payback would be = 4 + 0.4615
= 4.46 years