Answer : B) 2.50 years
Working notes for the above answer is as follow
From the information provided in comments about year and cash flow we can make the table of incremental cash flow as follw
| Year | Cash Flow | Incremental Cash Floe |
| 0 | -80,000 | -80,000 |
| 1 | 32000 | -48,000 |
| 2 | 32000 | -16,000 |
| 3 | 32000 | 16,000 |
During the year 3 we recive 32,000 but we needs only 16,000
So to recover 16000 we nedd the time
=16000*12/32000
=6 months or we can say half year
So total Payback period is 2.5 year
