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What Is the Payback Period

Question 7

Multiple Choice

What is the payback period?


A) a period of time over which an initial investment can be recovered fully assuming market interest rate to be equal to the MARR
B) a period of time after which a project starts generating profit
C) a period of time over which an initial investment cannot be recovered
D) a period of time over which an initial investment can be recovered fully
E) a period of time over which an initial investment can be recouped assuming zero interest rate

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