Which of the Following Is Used as the Equation's Denominator

question 175

Multiple Choice

Which of the following is used as the equation's denominator when computing the payback period for a capital asset with equal annual net cash inflows?

• A)Expected annual net cash inflow
• B)Total cash inflows
• C)Amount invested
• D)Net cash outflow

---

Definitions:

Price Of Oil

The cost per barrel of crude oil, which fluctuates based on global market conditions, supply and demand, and geopolitical events.

Transportation Costs

Expenses associated with the movement of goods or people from one location to another.

Premium

A payment to an insurance company in return for the promise to pay a claim in certain states of the world.

Insurance Company

A business entity that provides financial protection and compensation for losses to individuals and entities in exchange for premium payments.