What Is the Minimum Amount of Time for the Terms

question 1

Multiple Choice

What is the minimum amount of time for the terms of a collective agreement?

• A) six months
• B) one year
• C) two years
• D) five years

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Definitions:

Payback

A method of investment appraisal that calculates the time needed for an investment to generate cash flows sufficient to recover the initial outlay.

Four Year Payback

A capital budgeting method that calculates the time required to recoup the initial investment in a project, specifically over a period of four years.

Payback Period

The payback period is the length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.