The ________ model determines at what point in time cash outflow is recovered by the corresponding future cash inflow.
A)NPV
B)buyback
C)net present value
D)payback period

Question

Quizplus · Accepted Answer

The payback period model is used to determine the time it takes to recover the initial investment, i.e., when the future cash inflow equals the initial cash outflow. It is a simple measure of investment risk and liquidity and does not consider the time value of money.

The ________ Model Determines at What Point in Time Cash