The _____ is the number of years required to recover the initial cost of an investment.
A) cash flow
B) payback period
C) internal rate duration
D) time value point

Question

Quizplus · Accepted Answer

Payback period is the correct term for the number of years required to recover the initial investment cost. Choice A (cash flow) refers to the amount of money coming in or out of a business, but does not necessarily relate to the payback period. Choice C (internal rate duration) is not a commonly used term and does not relate to the payback period. Choice D (time value point) is not a commonly used term and does not relate to the payback period.

The _____ Is the Number of Years Required to Recover