The Length of Time Required for a Project's Discounted Cash

question 84

Multiple Choice

The length of time required for a project's discounted cash flows to equal the initial cost of the project is called the:

• A)net present value.
• B)discounted net present value.
• C)payback period.
• D)discounted profitability index.
• E)discounted payback period.

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Definitions:

Internally Generated

Refers to assets or values created within a company through its own processes and activities, rather than acquired externally.

AASB 138

An Australian Accounting Standard Board rule that outlines the accounting requirements for intangible assets not covered by other specific standards.

Finite Useful Lives

refers to the expected period over which an asset is anticipated to be economically beneficial to an entity, after which it is likely to be considered obsolete or worn out.

AASB 138

An Australian Accounting Standard that outlines the accounting treatment for intangible assets not covered by another Standard.