What is the estimated time required to earn sufficient net cash flow to cover the start-up investment?
A) Repayment estimate
B) Payback period
C) Net cash flow period
D) Recovery period

Question

Quizplus · Accepted Answer

The estimated time required to earn sufficient net cash flow to cover the start-up investment is the payback period. This is the amount of time it takes for the total cash inflows to equal the initial investment. It is an important metric for investors and business owners to evaluate the profitability of a project. The other options listed (repayment estimate, net cash flow period, recovery period) do not accurately describe this concept.

What Is the Estimated Time Required to Earn Sufficient Net