The Calculation of the Payback Period for an Investment When

question 26

Multiple Choice

The calculation of the payback period for an investment when net cash flow is even (equal) is:

• A) Cost of investment/Annual net cash flow
• B) Cost of investment/Total net cash flow
• C) Annual net cash flow/Cost of investment
• D) Total net cash flow/Cost of investment
• E) Total net cash flow/Annual net cash flow

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Definitions:

Ownership Risk

The risk of loss in value or return on investment due to changes in ownership structure or disputes over property rights.

Share Dilution

A reduction in existing shareholders' ownership percentage caused by the issuance of new shares.

Government Support

Financial or non-financial aid provided by the government to businesses, industries, or individuals in forms such as grants, loans, or tax incentives.

NCI

NCI, or Non-Controlling Interest, refers to the share of ownership in a subsidiary that belongs to shareholders other than the parent company.