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 calculate the time it takes for a company to recoup its initial investment. It determines the number of years required for the future cash inflows to equal the initial cash outflow. Therefore, choice D is the correct answer. Choices A, B, and C are not relevant to the question as they do not directly relate to the recovery of cash outflow by future cash inflow over time.

The ________ Model Determines at What Point in Time Cash