This chapter explained two methods to evaluate investments using recovery time, the payback period and break-even time

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This chapter explained two methods to evaluate investments using recovery time, the payback period and break-even time (BET). Refer to QS 25-15 and (1) compute the recovery time for both the payback period and break-even time, (2) discuss the advantage(s) of break-even time over the payback period, and (3) list two conditions under which payback period and break-even time are similar.

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