________ will tell you how long it will take you to earn enough profit to cover your start-up investment.
A) Return on sales
B) Return on assets
C) Payback
D) ROI

Question

Quizplus · Accepted Answer

Payback is a financial metric that calculates the amount of time it will take for a company to recover its initial investment (or cost). It determines how quickly the company will generate enough cash inflows to recoup the initial cash outflow. Therefore, option C is the correct answer. Options A, B, and D are all related to profitability ratios or measures, which are different from the payback period.

________ Will Tell You How Long It Will Take You