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By Measuring How Quickly a Firm Recovers Its Initial Investment

question 110

True/False

By measuring how quickly a firm recovers its initial investment, the payback period gives implicit consideration to the time value of money and ignores the timing of cash flows.


Definitions:

Complex Fraction

A fraction where the numerator, the denominator, or both contain fractions.

Simplify

The process of expressing something in a more comprehensible or simpler form, in mathematics, typically reducing an expression to its simplest form.

Expression

A combination of symbols that represent a mathematical object, such as numbers, variables, and operation symbols, but without an equals sign.

Complex Fraction

A fraction where the numerator, the denominator, or both contain fractions themselves.

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