The Time Expected to Pass Before the Net Cash Flows

question 42

Multiple Choice

The time expected to pass before the net cash flows from an investment would return its initial cost is called the:

• A) Amortization period.
• B) Payback period.
• C) Interest period.
• D) Budgeting period.
• E) Discounted cash flow period.

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Definitions:

Gas Station

A retail establishment that sells fuel and engine lubricants for motor vehicles.

Profit-Maximizing Quantity

The level of output at which a company can achieve the highest profit, where marginal revenue equals marginal cost.

Panel

A group of people gathered to discuss, investigate, or decide on issues within a particular field or subject.

Intersection

The point at which two or more lines or paths cross each other.