The Length of Time Required for an Investment to Generate

question 78

Multiple Choice

The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the:

• A)net present value.
• B)internal rate of return.
• C)payback period.
• D)profitability index.
• E)discounted cash period.

Understand the concept of sales mix and its effect on company's profitability.

Identify and classify costs into fixed, variable, and mixed categories.

Calculate the break-even point for multiple product companies.

Understand the concept of contribution margin and its use in break-even analysis.

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Definitions:

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