Payback Method MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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