The payback method measures
A)how quickly investment dollars may be recovered.
B)the cash flow from an investment.
C)the economic life of an investment.
D)the profitability of an investment.

Question

Quizplus · Accepted Answer

The payback method calculates the amount of time it takes to recover the initial investment in a project, which means it measures how quickly investment dollars may be recovered. It does not provide information on cash flow, economic life, or profitability.

The Payback Method Measures