The Payback Period Is Defined as the Length of Time

question 82

Multiple Choice

The payback period is defined as the length of time it requires for an investment to generate sufficient cash flows to recoup:

• A) The required rate of return on the investment.
• B) The initial cost of the investment.
• C) All of the initial cost plus the ongoing maintenance costs of the fixed assets required by the investment.
• D) Both the initial cost of the investment and the amount needed to provide the required rate of return.
• E) The future value of the initial cost of the investment.

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Definitions:

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The number of independent values or quantities which can be assigned to a statistical distribution.