The Basic Premise of the Payback Method Is That the Longer

question 42

True/False

The basic premise of the payback method is that the longer it takes the cost of an investment to be recovered, the less desirable is the investment

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Definitions:

Compounding Periods

The intervals at which interest is calculated and added to the account's balance in the context of investing or saving.

Variable-Rate Loan

A loan whose interest rate changes over the life of the loan.

Fixed-Rate Loan

A loan whose interest rate remains constant.

Floor Planning

A type of business loan generally made for “big-ticket” items. The business holds the item in inventory and pays interest, but it is actually owned by the lender until the item is sold.