The method that measures the time it will take to recoup, in the form of cash inflows, the total dollars invested in a project is called
A) the accrued accounting rate of return method.
B) payback.
C) internal rate of return method.
D) the book-value method.
E) the NPV.

Question

Quizplus · Accepted Answer

The method that measures the time it will take to recoup, in the form of cash inflows, the total dollars invested in a project is called payback. The other methods listed may also be used to evaluate a project, but they do not specifically address the time it takes to recoup the initial investment.

The Method That Measures the Time It Will Take to Recoup