-For Project One, how long will it take to recover the initial investments using a discount rate of 12%?
A)Less than one year
B)Between one year and two years
C)Between two years and three years
D)Between three years and four years
E)More than four years

Question

-For Project One, how long will it take to recover the initial investments using a discount rate of 12%?
A)Less than one year 
B)Between one year and two years 
C)Between two years and three years 
D)Between three years and four years 
E)More than four years

Quizplus · Accepted Answer

The payback period is calculated by discounting the cash flows at 12% and determining when the cumulative discounted cash flows equal the initial investment. This typically falls between two and three years for most projects with similar parameters.

-For Project One, How Long Will It Take to Recover