Question

The period needed to recoup, in the form of cash

inflows from operations, the initial money invested

is termed as ———— ​

Answer 1

Answer:

Payback period

Payback period in capital budgeting refers to the period of time required for the return on an investment to “repay” the sum of the original investment. Payback period is usually expressed in years. Start by calculating Net Cash Flow for each year: Net Cash Flow Year 1 = Cash Inflow Year 1 – Cash Outflow Year 1.

Answer 2

Answer:

Payback period

Payback period in capital budgeting refers to the period of time required for the return on an investment to “repay” the sum of the original investment. Payback period is usually expressed in years. Start by calculating Net Cash Flow for each year: Net Cash Flow Year 1 = Cash Inflow Year 1 – Cash Outflow Year 1.

Explanation:

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