Payback Method Multiple Choice Questions with Answers – PDF Download

MCQ 1: If an initial investment is $765000, the payback period is 4.5 years, then increase in future cash flow will be:

1. $5,645,000
2. $6,442,500
3. $3,442,500
4. $5,442,500

MCQ 2: If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be:

1. 3.34 years
2. 4.34 years
3. 5.34 years
4. 6.34 years

MCQ 3: The net initial investment is divided by uniform increasing in future cash flows to calculate:

1. discounting period
2. investment period
3. payback period
4. earning period

MCQ 4: If the payback period is 4 years and the uniform increases in cash flows per year is $2750000, then the net initial investment can be:

1. $10,511,000
2. $12,105,000
3. $1,100,000
4. $11,000,000

MCQ 5: The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as:

1. net value cash flow method
2. payback method
3. single cash flow method
4. lean cash flow method