Multiple Choice
The payback period is best defined as:
A) initial investment / annual after-tax cash inflow.
B) annual after-tax cash inflow/ initial investment.
C) initial investment / useful life of investment.
D) (present value of the cash flows, exclusive of the initial investment) / initial investment.
E) initial investment/ (present value of the cash flows, exclusive of the initial investment) .
Correct Answer:
Verified
Correct Answer:
Verified
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