The expected period of time that will elapse between the date of a capital investment and the complete recovery in cash of the amount invested is called the discount period.

Question

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The expected period of time that will elapse between the date of a capital investment and the complete recovery in cash of the amount invested is actually called the payback period, not the discount period. The discount period refers to the time period over which a discount rate is applied to future cash flows to calculate the net present value of the investment.

The Expected Period of Time That Will Elapse Between the Date