FUNDAMENTAL ACCT PRIN CONNECT ACCESS
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
24th Edition
ISBN: 9781266494604
Author: Wild
Publisher: MCG
Question
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Chapter 26, Problem 5DQ
To determine

Introduction:

Payback Period:

It refers to the time period required to take back or regain the amount invested. It is computed in relation to the initial investment and inflow of cash per period. The project feasibility is assured if the payback period is less than the targeted period of returns on investment.

To State:

The reason for the attraction to the management in an investment having shorter payback period.

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