The Time Expected to Pass Before the Net Cash Flows

question 42

Multiple Choice

The time expected to pass before the net cash flows from an investment would return its initial cost is called the:

• A) Amortization period.
• B) Payback period.
• C) Interest period.
• D) Budgeting period.
• E) Discounted cash flow period.

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Definitions:

Inherit

To receive property, titles, debts, rights, or obligations as a result of someone's death.

Property Distribution

The division of property assets among beneficiaries or heirs according to a will or the law of intestacy.

Spendthrift Trust

A trust designed to provide a beneficiary with income while protecting the trust assets from being claimed by creditors or the beneficiary's poor spending habits.

Trust Assets

Assets that are held and managed by a trust for the benefit of the trust's beneficiaries.