An assessment method widely used in practice which enables managers to screen investment projects to determine which projects can recoup their investment outlay the fastest,is the:

Question

Quizplus · Accepted Answer

The payback method is a popular technique used in practice to screen investment projects, as it helps managers determine which projects can recover their initial investment the fastest. This method calculates the amount of time required for the project's cash inflows to equal the cash outflows or initial investment. Projects with shorter payback periods are preferred as they allow for faster recovery of investment and may carry less risk. The other options, such as internal rate of return, accounting rate of return, and net present value, are also commonly used methods for evaluating investment projects but are not specifically designed to identify the projects with the fastest payback periods.

An Assessment Method Widely Used in Practice Which Enables Managers