The Payback Period of an Investment Is Defined as ____

question 87

Multiple Choice

The payback period of an investment is defined as ____.

• A) the number of years required for cumulative profits from a project to equal the initial outlay
• B) the number of years required for the cumulative cash flows from a project to equal the initial outlay
• C) the number of years required for the cumulative cash flows from a project to equal the average investment in the project, when depreciation is considered
• D) a period of time sufficient to earn a rate of return equal to the firm's cost of capital

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Definitions:

Compliance

The act of conforming, submitting, or adapting one's behavior to align with the rules, demands, or expectations of others.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Cognitive Representation

The manner in which knowledge and ideas are formed, stored, and processed in the mind.

Guidelines for Behavior

Broad recommendations or principles designed to direct or influence actions and conduct in relation to behavior.