Which of the Following Is the Formula to Calculate Payback

question 32

Multiple Choice

Which of the following is the formula to calculate payback period?

• A)Payback period = Original investment / Average net income
• B)Payback period = Investment / Original investment
• C)Payback period = Average net income / Original investment
• D)Payback period = Original investment / Annual cash flow

---

Definitions:

Listener

An individual who actively engages in hearing and processing information that is being communicated by another person or source.

Written Agreement

A formal contract or document outlining terms, conditions, and stipulations agreed upon by all parties involved, typically legally binding.

Contract

A legally binding agreement between parties.

Culture

The ideas, customs, and social behavior of a particular people or society.