The length of time required for a project's discounted cash ﬂows to equal the initial cost of the project is called the:
A)net present value.
B)internal rate of return.
C)payback period.
D)discounted proﬁtability index.
E)discounted payback period.

Question

Quizplus · Accepted Answer

The discounted payback period is the length of time required for a project's discounted cash flows to equal the initial cost of the project. This method takes into account the time value of money by discounting the cash flows at the project's cost of capital before determining the payback period.

The Length of Time Required for a Project's Discounted Cash