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