When Computing the Payback Period for a Capital Asset with Equal

question 201

Multiple Choice

When computing the payback period for a capital asset with equal annual net cash inflows, which of the following is used as the equation's numerator?

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

---

Definitions:

Distributional Errors

Mistakes made during performance appraisal processes that involve unfair distribution of ratings across employees.

Strictness Error

A bias in performance appraisal characterized by consistently rating employees more harshly than their performance deserves.

Performance Feedback

The process in which employees receive information and evaluation about their work performance from supervisors, peers, or self-assessment.