-For the project, how long will it take to recover the initial investments using a discount rate of 18%?
A)Less than two years
B)Between two years and three years
C)Between three years and four years
D)Between four years and five years
E)More than five years

Question

-For the project, how long will it take to recover the initial investments using a discount rate of 18%?
A)Less than two years 
B)Between two years and three years 
C)Between three years and four years 
D)Between four years and five years 
E)More than five years

Quizplus · Accepted Answer

The recovery period of the initial investment using a discount rate of 18% is between three and four years, as the discounted cash flows accumulate to cover the initial investment within this timeframe.

-For the Project, How Long Will It Take to Recover