The method that measures the time it will take to recoup,in the form of future cash inflows,the total dollars invested in a project is called ________.
A) the accrued accounting rate-of-return method
B) the payback method
C) the internal rate-of-return method
D) the book-value method

Question

Quizplus · Accepted Answer

The method described in the question is the payback method, which measures the time it takes for a project to recoup its initial investment. The other options listed (accrued accounting rate-of-return method, internal rate-of-return method, book-value method) do not specifically measure the time it takes to recoup an investment in this way.

The Method That Measures the Time It Will Take to Recoup,in