When Calculating a Project's Payback Period,cash Flows Are

question 47

Multiple Choice

When calculating a project's payback period,cash flows are:

• A) discounted at the opportunity cost of capital.
• B) discounted at the internal rate of return.
• C) discounted at the risk-free rate of return.
• D) not discounted at all.

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Definitions:

Stock Price

Stock price is the current price at which a share of a company is trading on the stock market.

Earnings Potential

The maximum amount of money an individual, asset, or company could potentially earn.

Slope

In mathematics, it refers to the measure of the steepness, incline, or grade of a straight line, quantitatively describing the change in the vertical direction for a unit change in the horizontal direction.

Stock Return

The gain or loss on a stock investment, usually expressed as a percentage of the investment's initial cost.