In a payback analysis,the ____ values are the running sums of the Time-Adjusted Benefits over all the years.
A) Time-Adjusted Benefits
B) Cumulative Time-Adjusted Benefits
C) Cumulative Time-Adjusted Costs
D) Time-Adjusted Costs

Question

Quizplus · Accepted Answer

The running sums of the Time-Adjusted Benefits over all the years are known as Cumulative Time-Adjusted Benefits. This is what is calculated in a payback analysis, where the goal is to determine how many years it will take to recoup the initial investment. Therefore, option B, Cumulative Time-Adjusted Benefits, is the correct choice. Option A is incorrect because it only refers to the Time-Adjusted Benefits for a particular year, whereas a payback analysis requires consideration of all years. Option C, Cumulative Time-Adjusted Costs, is also incorrect since costs are subtracted from benefits to determine the net benefits. Option D, Time-Adjusted Costs, is not relevant in a payback analysis since the focus is on the benefits.

In a Payback Analysis,the ____ Values Are the Running Sums