Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 84

This chapter explained two methods to evaluate investments using recovery time, the payback period and break-even time (BET). Refer to QS 25-26 and (1) compute the recovery time for both the payback period and break-even time, (2) discuss the advantage(s) of break-even time over the payback period, and (3) list two conditions under which payback period and break-even time are similar.