Asked by
Carolina Ponce
on Nov 12, 2024
Verified
The cash payback period for this investment is
A) 4 years
B) 5 years
C) 20 years
D) 3 years
Cash Payback Period
The amount of time it takes for an investment to generate enough cash flow to recover its initial cost.
Present Value Factor
A factor used in calculating the present value of a future cash flow, discounting its value to reflect time and risk.
- Determine and grasp the significance of the cash recovery time in the context of investing.
- Employ insights on present value factors for assessing investment acceptability.
Verified Answer
AP
Learning Objectives
- Determine and grasp the significance of the cash recovery time in the context of investing.
- Employ insights on present value factors for assessing investment acceptability.