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The Payback Period Is Best Defined As

Question 1

Multiple Choice

The payback period is best defined as:


A) The time period required for total revenue to equal the initial investment.
B) The time period required to receive cash flows sufficient to cover the initial investment.
C) The time period required for the present value of all cash flows to equal the initial investment.
D) The time period required for the NPV to equal zero.

Correct Answer:

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