Examlex
Which of the following comparisons between long-term and short-term memory is true?
Payback Period
The time duration required for an investment to generate cash flows sufficient to recover the initial cost of the investment.
Net Present Value
The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.
Simple Rate
A basic form of interest calculation representing a percentage of the principal amount over a certain period of time.
Payback Period
The payback period is the duration of time it takes to recover the cost of an investment. This metric is commonly used to assess the feasibility or profitability of a project.
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