Which of the Following Is the Formula for Payback Period

question 3

Multiple Choice

Which of the following is the formula for payback period?

• A)Increased cash flow per period / initial investment.
• B)Initial investment / increased cash flow per period.
• C)CF_t / (1 + r)^t
• D)(Average annual income from IT initiative)/ (Total IT initiative investment cost).

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Definitions:

Duhring's Disease

Another name for Dermatitis Herpetiformis, a chronic blistering skin condition linked to gluten sensitivity.

Differential Diagnosis

The process of distinguishing a disease or condition from others that present with similar clinical features, through systematic elimination or comparison.

Versus

Versus is a term used to indicate a comparison or contrast between two things in a legal, competitive, or descriptive context.

Possible Diagnosis

A preliminary identification of a disease or condition based on available symptoms, tests, and observations, pending further confirmation.