The Payback Period Is Determined Using Which of the Following

question 99

Multiple Choice

The payback period is determined using which of the following formulas?

• A) Amount to be invested / Annual average net income
• B) Annual net cash flow / Amount to be invested
• C) Annual average net income / Amount to be invested
• D) Amount to be invested / Annual net cash flows

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Definitions:

Skill-Based Pay

A compensation system where pay levels are determined by an individual's skills or knowledge levels, rather than job title or position.

Scanlon Plans

Employee incentive programs focused on cost saving and efficiency, sharing the resulting financial gains with employees.

Profit-Sharing Programs

A company policy where employees receive a share of the firm's profits, typically as a portion of their compensation.

Reward Motivation

The drive to engage in activities that are expected to yield positive outcomes or rewards.