The Payback Period of a Project Is Defined As

question 125

Multiple Choice

The payback period of a project is defined as:

• A)the number of years required for cumulative profits from a project to equal the initial outlay.
• B)the number of years required for the cumulative cash flows from a project to equal the initial outlay.
• C)the number of years required for the cumulative cash flows from a project to equal the average investment in the project.
• D)a period of time sufficient to earn a rate of return equal to the firm's cost of capital.

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Definitions:

Conclusion

The final part of something, typically a summary or decision made after considering all the presented information or evidence.

Premises

Assertions or claims considered true and form the foundational premises for a conclusion in reasoning.

Inductive Argument

A type of reasoning that moves from specific instances to a general conclusion, which can be more or less probable but not certain.

Puppets

Articulated figures or models, manipulated by a puppeteer, used in performances to entertain or convey stories.