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.

Question

Quizplus · Accepted Answer

The discounted payback period is the length of time needed to recover the initial investment considering the time value of money, unlike the simple payback period which does not take into account the time value of money.

The Length of Time Needed to Recover the Initial Investment