The Payback Period Is the

question 37

Multiple Choice

The payback period is the

• A)length of time over which the investment will provide cash inflows.
• B)length of time over which the initial investment is recovered.
• C)shortest length of time over which an investment may be depreciated.
• D)shortest length of time over which the net present value will be positive.

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Definitions:

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Accounting Changes

Accounting Changes are modifications in the accounting methods, estimates, or reporting entity that affect the financial statements of a company.

Net Income

The total earnings of a company after subtracting all expenses from revenues, also known as net earnings or net profit.