The Payback Period of a Project That Produces Even Cash

question 91

Multiple Choice

The payback period of a project that produces even cash flows each year is calculated by dividing the

• A)net initial investment by the projected net annual cash flow.
• B)gross initial investment by the projected net annual cash flow.
• C)net initial investment by the projected annual cash inflows.
• D)gross initial investment by the projected annual cash inflows.

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Definitions:

Problem-Solving

The process of identifying issues, analyzing possible solutions, and selecting and implementing the best option to address a challenge or difficulty.

Team Cohesiveness

Describes the extent to which team members are attracted to each other and motivated to stay in the team, which generally results in higher productivity and morale.

Task Orientation

A focus on completing tasks and achieving specific outcomes, often prioritizing work and productivity.

Trait Approach

A perspective in psychology focused on the identification and measurement of specific personality traits.