A Project's Payback Period Is the Length of Time Necessary

question 47

True/False

A Project's payback period is the length of time necessary to generate an NPV of zero.

---

Definitions:

Tax Shifting

The process whereby the economic burden of a tax is passed on from one group to another.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits, varying according to earnings levels.

Corporation Income Tax

A tax imposed on the net income of a corporation, calculated based on the company's profit.

Capital Flow

The movement of money for the purpose of investment, trade, or business production, either within a country or internationally.