The Cash Payback Period Is Calculated by Dividing the Cost

question 67

Multiple Choice

The cash payback period is calculated by dividing the cost of the capital investment by the

• A)annual net income.
• B)net annual cash inflow.
• C)present value of the cash inflow.
• D)present value of the net income.

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Definitions:

Revealed Preference Theory

An economic theory proposing that individuals' preferences can be deduced from their purchasing habits and choices, rather than through their words or responses to surveys.

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Indifference Curve

A graphical representation showing combinations of goods among which a consumer is indifferent, indicating the same level of utility or satisfaction.