The payback period is the amount of time required for an investment to generate cash flows to recover its Blank______. Multiple choice question. initial cost required rate of return internal rate of return present value of future cash flows

The payback period is the amount of time required for an investment to generate cash flows to recover its Blank______. Multiple choice question. initial cost required rate of return internal rate of return present value of future cash flows

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

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Question

The payback period is the amount of time required for an investment to generate cash flows to recover its Blank______.

Multiple choice question.

initial cost

required rate of return

internal rate of return

present value of future cash flows

Definition Definition Discount rate of a project wherein its net present value equals zero. Internal rate of return equates the present value of future cash flows with the initial investments. Internal rate of return helps to determine nominal cash flows.

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