The Payback Period of an Investment Is Defined as ____

Multiple Choice

The payback period of an investment is defined as ____.

A) the number of years required for cumulative profits from a project to equal the initial outlay
B) the number of years required for the cumulative cash flows from a project to equal the initial outlay
C) the number of years required for the cumulative cash flows from a project to equal the average investment in the project, when depreciation is considered
D) a period of time sufficient to earn a rate of return equal to the firm's cost of capital