The ________ Measures the Time It Will Take to Recoup,in

question 65

Multiple Choice

The ________ measures the time it will take to recoup,in the form of expected future cash flows,the net initial investment in a project.

• A)income tax
• B)payback method
• C)net present value
• D)internal rate of return
• E)external rate of return

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Definitions:

Retained Earnings

The portion of a company’s net profits which is kept within the company instead of being paid out to the shareholders as dividends.

Dividend Reinvestment Plans

Programs that allow investors to automatically reinvest their cash dividends into additional shares or fractional shares of the underlying stock.

Open Market

A freely competitive market where buyers and sellers can engage in transactions with minimal government intervention.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage in relation to the assets they own.