The method of financial analysis, which focuses on the length of time it takes to recover the initial cost of an investment, is:
(A) payback
(B) internal rate of return
(C) cost-volume
(D) queuing
(E) net present value
Answer (2)
The method of financial analysis that calculates the time to recover an investment's initial cost is called the payback method. It is important for assessing investment risk and liquidity. The answer to the question is (A) payback.
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The method of financial analysis that focuses on the length of time it takes to recover the initial cost of an investment is known as the payback period method . Therefore, the correct choice for this question is:
(A) payback ;
