An uncovered cost at start of year is $200, full cash flow during recovery year

Question

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be

Options:

A . 5 years

B . 3.5 years

C . 4 years

D . 4.5 years

Answer: Option B
Answer: (b).3.5 years

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