Practice mode Finance

What is the payback period called when the expected cash flows are discounted at the project’s cost of capital?

Correct answer A. Discounted payback period

Explanation

The discounted payback period measures how long it takes for the present value of cash inflows, discounted at the cost of capital, to recover the initial investment.

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What is the payback period called when the expected cash flows are discounted at the project’s cost of capital?

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What is the payback period called when the expected cash flows are discounted at the project’s cost of capital?

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