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The Calculation of the Payback Period for an Investment When

Question 66

Multiple Choice

The calculation of the payback period for an investment when net cash flow is uneven is:


A) Determining when the cumulative total of net cash flows reaches zero.
B) Determining when net income equals the cost of the investment.
C) Determining which depreciation method will shorten the period.
D) Determining the net present value for each cash flow.
E) Determining the applicable hurdle rate.

Correct Answer:

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