Q117
Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as
A.
net value cash flow method
B.
payback method
AnswerC.
single cash flow method
D.
lean cash flow method
Answer: Option B
Solution
Answer: Option B
Solution:
Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as payback method. 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.