Which of the Following Best Defines Payback Period

question 63

Multiple Choice

Which of the following best defines payback period?

• A)It is the number of time periods before the cash inflows of a proposed project exceed the amount of the initial investment.
• B)It is the number of time periods before the amount of the initial investment exceeds the cash inflows of a proposed project.
• C)It is the number of time periods before the cash inflows of a proposed project equal the amount of the initial investment.
• D)It is the number of time periods before the net expenditure exceeds the amount of the initial investment.

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Definitions:

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a product or service and the quantity demanded by consumers.

Quantity Demanded

The volume of a commodity or service that people are ready and capable of acquiring at a given price point.

Economists

Professionals who study, develop, and apply theories and concepts in economics to understand how individuals, businesses, and societies allocate resources.

Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of that good that a supplier is willing to supply.