Asked by Markus Chobotaru on Jun 04, 2024
Verified
The expected amount of time to recover the initial amount of an investment is called the:
A) Amortization period.
B) Payback period.
C) Interest period.
D) Budgeting period.
E) Discounted cash flow period.
Amortization Period
The length of time over which the principal of a debt is scheduled to be paid down through amortization.
Discounted Cash Flow
A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.
- Compute the time needed for the recovery of capital investment costs.
Verified Answer
MH
Mohamad HalimehJun 10, 2024
Final Answer :
B
Explanation :
The payback period is the time it takes for an investment to recover its initial cost, making it the most appropriate option. The other options are not relevant to this concept.
Learning Objectives
- Compute the time needed for the recovery of capital investment costs.
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