What values are necessary in order to calculate a payback period with a project that has uniform cash flows?

Question

Quizplus · Accepted Answer

The payback period calculation requires two values: the net initial investment (the amount of money required to start the project) and the uniform increase in annual future cash flows (the amount of money the project generates each year). The payback period is the amount of time it takes for the project to generate enough cash flows to recover the initial investment. Uniform cash flows mean the same amount of cash flows occur each year, making B the correct choice.

What Values Are Necessary in Order to Calculate a Payback