Payback analysis, in spreadsheets, requires a formula to display cumulative totals, year by year.

Question

Quizplus · Accepted Answer

Payback analysis involves calculating the number of years it takes for the initial investment to be recouped through generated cash flows. In spreadsheets, this can be done by setting up a formula to show the cumulative cash flow totals year by year, until the initial investment is fully recovered. Therefore, the statement is true.

Payback Analysis, in Spreadsheets, Requires a Formula to Display Cumulative