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Which of the following statements is true regarding the payback period? Multiple Choice It measures the length of time that it takes for a project

Which of the following statements is true regarding the payback period?

Multiple Choice

  • It measures the length of time that it takes for a project to recover its initial cost from the net cash inflows that it generates.

  • It measures the length of time that it takes for a project to recover its initial cost from the discounted incremental net operating income that it generates.

  • It measures the length of time that it takes for a project to recover its initial cost from the incremental net operating income that it generates.

  • It measures the length of time that it takes for a project to recover its initial cost from the discounted net cash inflows that it generates.

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