PRC-2 · Chapter 6 · Question 5 of 45
Which traditional investment appraisal method specifically measures the chronological time required for cumulative cash inflows to equal the initial capital outlay?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Payback Period
Explanation
The payback period simply calculates how long it takes for a business to completely recover its initial investment out of the net cash inflows generated by the project.
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