What Does the Payback Method Measure

question 122

Multiple Choice

What does the payback method measure?

• A) How quickly investment dollars may be recovered.
• B) The cash flow from an investment.
• C) The economic life of an investment.
• D) The profitability of an investment.

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Definitions:

Tourism Industry

A sector of the economy that encompasses all activities related to travel and hospitality for leisure or business purposes.

Aggregate Planning

a process in operations management aimed at determining optimal production levels, inventory levels, and workforce levels, considering forecasted demand over a medium-term horizon.

Supply Chain

The connected system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Firm Profits

The financial gain a company receives after all expenses, taxes, and costs have been subtracted from total revenue.