The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:
A)produce a positive annual cash flow.
B)produce a positive cash flow from assets.
C)offset its fixed expenses.
D)offset its total expenses.
E)recoup its initial cost.

Question

Quizplus · Accepted Answer

The payback period measures the time required for an investment to generate cash flows that cover the initial investment cost.

The Payback Period Is the Length of Time It Takes