A Capital Budgeting Method That Considers How Quickly a Project

question 41

Short Answer

A capital budgeting method that considers how quickly a project recovers costs is known as_________. An enhancement to this method that also considers the time value of money is called________.

---

Definitions:

Journalize Entry

The act of recording a transaction in the accounting journal as part of the bookkeeping process.

Accounts Receivable Turnover

A financial metric indicating how often a company collects its average accounts receivable within a period, showing its efficiency in credit and collections.

Days' Sales in Receivables

A financial ratio that measures how well a company is managing its accounts receivable by calculating the average number of days it takes to collect payments from customers.

Fiscal Year

A one-year period used for financial reporting and budgeting by businesses and governments, which may not align with the calendar year.