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
Answer: Option D
Solution(By Examveda Team)
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
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Sir I am not understand