All else equal, the payback period for a project will decrease whenever the:
A) Initial cost increases.
B) Required return for a project increases.
C) Assigned discount rate decreases.
D) Cash inflows are moved forward in time.
E) Duration of a project is lengthened.

Question

Quizplus · Accepted Answer

Moving cash inflows forward in time means the project receives its cash sooner, thus reducing the time it takes to pay back the initial investment.

All Else Equal, the Payback Period for a Project Will