The length of time a firm must wait to recoup, in present value terms, the money it has invested in a project is referred to as the:
A) net present value period.
B) internal return period.
C) payback period.
D) discounted profitability period.
E) discounted payback period.

Question

The length of time a firm must wait to recoup, in present value terms, the money it has invested in a project is referred to as the: 
A) net present value period. 
B) internal return period. 
C) payback period. 
D) discounted profitability period. 
E) discounted payback period.

Quizplus · Accepted Answer

The discounted payback period is the length of time it takes to recoup an investment in present value terms, accounting for the time value of money. This contrasts with the simple payback period which does not take the time value of money into account.

The Length of Time a Firm Must Wait to Recoup