Which of the Following Best Defines Payback Period

Multiple Choice

Which of the following best defines payback period?

A) It is the number of time periods before the cash inflows of a proposed project exceed the amount of the initial investment.
B) It is the number of time periods before the amount of the initial investment exceeds the cash inflows of a proposed project.
C) It is the number of time periods before the cash inflows of a proposed project equal the amount of the initial investment.
D) It is the number of time periods before the net expenditure exceeds the amount of the initial investment.