The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the
A) net present value.
B) payback period.
C) internal rate of return.
D) profitability index.
E) discounted cash period.
Correct Answer:
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Q2: One advantage of the payback method of
Q5: The payback method
A)discounts all cash flows properly.
B)requires
Q6: The value of a firm
A)increases when a
Q7: The discounted payback method
A)discounts a project's initial
Q7: All else equal,the payback period for a
Q9: What is the key reason why a
Q12: An investment
A)is acceptable if its calculated payback
Q13: Assume a project has normal cash flows.Given
Q14: Net present value
A)considers only cash flows occurring
Q17: An investment is acceptable if its average
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