A project that just breaks even on a ﬁnancial basis has a discounted payback equal to the project's
life.

Question

Quizplus · Accepted Answer

A project that just breaks even on a financial basis will have a discounted payback period equal to the project's life. This means that the project will pay back the initial investment over the course of its lifetime, and after that period, the net present value of the project will be zero. Anything shorter than the project's life would result in a negative net present value, while anything longer would result in a positive net present value.

A Project That Just Breaks Even on a ﬁNancial Basis