Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing

Search...

Payback Period vs Discounted Payback Period

5 Questions

0 Views

Payback Period vs Discounted Payback Period

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following best describes the payback period?

The time it takes for a project to generate positive cash flows

The time it takes for a project to break even in cash collections using discounted dollars

The time it takes for a project to break even in cash collections using nominal dollars (correct)

The time it takes for a project to generate negative cash flows

What does the discounted payback period take into account that the payback period does not?

Neither the timing of cash flows nor the prevailing rate of return in the market

The timing of cash flows and the prevailing rate of return in the market (correct)

The prevailing rate of return in the market only

The timing of cash flows only

Why may the payback period and the discounted payback period not return the same result?

Due to the discounting of cash flows (correct)

Due to the prevailing rate of return in the market

Due to the timing of cash flows

Due to the compound interest

Which figure may the payback period return, while the discounted payback period returns a negative figure?

<p>Positive figure</p> Signup and view all the answers

What is the main difference between the payback period and the discounted payback period?

<p>The consideration of discounting cash flows</p> Signup and view all the answers

Payback Period vs Discounted Payback Period

Choose a study mode

Podcast

Questions and Answers

Which of the following best describes the payback period?

What does the discounted payback period take into account that the payback period does not?

Why may the payback period and the discounted payback period not return the same result?

Which figure may the payback period return, while the discounted payback period returns a negative figure?

What is the main difference between the payback period and the discounted payback period?

More Like This

The Payback Period

Discount Rate vs Payback Period Quiz

Discounted Payback Period Calculation

Payback Period Method in Capital Budgeting

Upgrade to continue