The number of periods necessary to repay the original investment is the: time value of money...
The number of periods necessary to repay the original investment is the:
time value of money
payback
accounting rate of return
discount factor
Homework Answers
time value of money: How value of money changes with time. $100 will not be of same value a year from now, depending on interest rate and inflation rate.
accounting rate of return: It calculates the return generated from net income of capital investment and does not take time value of money into account
discount factor: It is the factor that needs to be multiplied to get current value of future value of money
payback : Time required to return initial investment
Hence choose " payback "
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The number of periods necessary to repay the original investment
is the:
time value of money...
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