The cash inflows and (outflows) associated with a project are as follows: At start 

(120000) , Year1-40000, Year2-50000, Year3-60000, Residual Value(at the end of 3rd 

year)-20000. The payback period for this project would be: 

A 2 years and 3 months. 

B 2 years and 6 months. 

C 3 years. 

D 2 years.

1 Answer

Answer :

B 2 years and 6 months.

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