Q164
The return after the pay off period is not considered in case of __________.
A.
Payback period method
AnswerB.
Interest rate method
C.
Present value method
D.
Discounted cash flow method
Answer: Option A
Solution
Answer: Option A
Solution:
The return after the pay off period is not considered in case of Payback period method. Payback period is the time in which the initial outlay of an investment is expected to be recovered through the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques.