The formula used to calculate the payback period for qualifying projects is ________.
A)Ct = ∑ (Cd + Ci)
B)Ct = PP/Ba
C)PP = ∑ (Cd + Ci)
D)PP = Ct/Ba
E)Ba = Cd + Ci

Question

Quizplus · Accepted Answer

The formula for payback period is commonly expressed as PP = Ct/Ba, where PP is the payback period, Ct is the initial cost of the project, and Ba is the annual cash inflow from the project. Therefore, option D is the correct choice.

The Formula Used to Calculate the Payback Period for Qualifying