Asked by
Sergio Blanco
on Nov 08, 2024
Verified
The length of time needed to recover the initial investment once time value of money is considered is called the:
A) Discounted payback period.
B) Average accounting return period.
C) Discounted net present value period.
D) Payback period.
E) Internal time interval.
Discounted Payback Period
The time required to recover the cost of an investment while considering the time value of money.
Initial Investment
The amount of money used to start an investment project or venture.
- Understand the strengths and weaknesses of employing the payback period approach in capital budgeting decisions.
- Apply the time value of money concept in evaluating investment opportunities.
Verified Answer
MD
Learning Objectives
- Understand the strengths and weaknesses of employing the payback period approach in capital budgeting decisions.
- Apply the time value of money concept in evaluating investment opportunities.