The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the _____.
A) payback period
B) synodic period
C) chargeback period
D) grace period

Question

Quizplus · Accepted Answer

The term "payback period" refers to the amount of time that it takes for a business to earn back the funds it paid out to obtain a capital asset. This is typically measured in years, and it is a useful metric for assessing the profitability of an investment. A shorter payback period is generally seen as more favorable, as it means that the business will recoup its investment more quickly and start earning a profit.

The Amount of Time It Takes a Business to Earn