Q451
An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating
A.
original period
B.
investment period
C.
payback period
AnswerD.
forecasted period
Answer: Option C
Solution
Answer: Option C
Solution:
An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating payback period. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a breakeven point.