Question

The number of time periods it will take before the cash inflows of a proposed project...

The number of time periods it will take before the cash inflows of a proposed project equal the amount of the initial project investment is known as:

a. none of the answers is correct.

b. net present value

c. payback period

d. mutually exclusive period

e. internal rate of return

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Answer #1
The answer is Option c.
The number of time periods it will take before the cash inflows of a proposed project
equal the amount of the initial project investment is known as: payback period.
The payback period is the length of time required to recover the cost of an investment.
The payback period of a given investment is an important determinant of whether to undertake the project as
longer payback period are typically not desirable.
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