Which one of the following capital budgeting decision methods measures how long it takes for a project's benefits to recover the project's cost?
A)profitability index
B)payback period
C)modified internal rate of return
D)net present value

Question

Quizplus · Accepted Answer

The payback period method measures the time it takes for a project's cash inflows to recover the initial investment or cost of the project. It is useful for businesses that have limited capital and want to recover their investment quickly. Therefore, the payback period method is the best choice for this question.

Which One of the Following Capital Budgeting Decision Methods Measures