The amount of time it takes to recover the original cost of an investment is computed using
A) the payback period technique.
B) the periodic investment recovery technique.
C) the investment return technique.
D) the ratio analysis technique.

Question

Quizplus · Accepted Answer

The payback period technique is specifically designed to calculate the amount of time it takes to recover the initial investment cost, so it is the best choice for this question. The other techniques listed may be useful for evaluating investments in other ways, but they do not apply to this particular calculation.

The Amount of Time It Takes to Recover the Original