The payback period is the length of time it takes for an investment to recoup its own
initial cost out of the cash receipts it generates.

Question

The payback period is the length of time it takes for an investment to recoup its owninitial cost out of the cash receipts it generates.

Turky Basahel · Accepted Answer

Final Answer : True, Explanation :  The payback period is calculated by dividing the initial cost of the investment by the annual cash inflows. It does not take into account the time value of money or the cash flows beyond the payback period.

The payback period is the length of time it takes for an investment to recoup its own
initial cost out of the cash receipts it generates.

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