The Payback Period Method Measures

question 29

Multiple Choice

The payback period method measures

• A) the profitability of an investment.
• B) the cash flows from an investment.
• C) how quickly investment dollars may be recovered.
• D) the economic life of an investment.

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Definitions:

Idea

A thought or suggestion as to a possible course of action, plan, or concept.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact, often involving the manipulation and control of variables.

B2B Products

Goods and services marketed and sold from one business to another, not directly to consumers.

Business Products

Goods and services that are purchased by organizations for use in the production of other goods and services, for resale, or for general business operations.