Question 1
The time it takes, in years, for an investment to return the original amount of invested capital is referred to as
◦ period of return.
◦ the investment return period.
◦ the payback period.
◦ the internal rate of return.
Question 2
The payback period is defined as the amount of time, in years, that it takes
◦ for an investment to return the original amount of the capital plus the required rate of return.
◦ for an investment to return the original amount of invested capital.
◦ the company to earn enough profit generated from the capital asset to cover its cost.
◦ the company to provide a required return on the capital asset.