If Cash Flows Are Not Equal Each Year,the Payback Period

question 18

Multiple Choice

If cash flows are not equal each year,the payback period:

• A)cannot be calculated.
• B)is calculated by dividing the initial investment by the average cash flows.
• C)is calculated by subtracting each year's cash flows from the initial investment until zero is reached.
• D)is calculated by dividing the total years in the project by two.

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Definitions:

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