The time expected to pass before the net cash flows from an investment would return its initial cost is called the:
A) Amortization period.
B) Payback period.
C) Interest period.
D) Budgeting period.
E) Discounted cash flow period.

Question

Quizplus · Accepted Answer

The time expected to pass before the net cash flows from an investment would return its initial cost is referred to as the payback period. This is the time it takes for the investment to pay for itself.

The Time Expected to Pass Before the Net Cash Flows