The Length of Time Required for an Investment to Generate

question 85

Multiple Choice

The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the:

• A) net present value.
• B) internal rate of return.
• C) payback period.
• D) profitability index.
• E) discounted cash period.

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Definitions:

Service Brake Application

The act of engaging the primary braking system of a vehicle to reduce speed or come to a stop.

Trailer Service Gladhand

A type of coupling used to connect the air brake line from a truck to a trailer, facilitating control over the trailer's brake system.

Slack Adjuster Stroke

The distance a slack adjuster moves to apply the brakes in a vehicle, important for the proper functioning of the braking system.

Variance

A statistical measurement of the dispersion of a set of data points, often used to quantify risk.