Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as

A net value cash flow method
B payback method
C single cash flow method
D lean cash flow method

Correct Answer: payback method

Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as payback method. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a breakeven point.
Bissoy MCQ
#Management #Management Accounting

Related Questions

A can complete a project in 20 days and B can complete the same project in 30 days. A and B start working on the project together and A quits 10 days before the project is expected to be completed. How many days in total will the project take to complete ?
A 16 days
B 18 days
C 23 days
D 27 days
Budget which calculates expected revenues and expected costs, based on actual output quantity is named as
A flexible budget
B fixed budget
C variable budget
D multiplied budget
Recoup means--
A lose
B perpetual
C cifeimburse
D disseminate
On an accounting report of cash flows an "increase (decrease) in cash and cash equivalents" shows
A a cash flow from operating activities
B a cash flow from investing activities.
C a cash flow from financing activities.
D none of above.
If the scheduled completion time of a project is more than the earliest expected time for completion of the project, then the probability of completion of the project within the scheduled completion time will be
A 50 %
B Less than 50 %
C More than 50 %
D 100 %
Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as
A discounted payback period
B discounted rate of return
C discounted cash flows
D discounted project cost
A and B started a business jointly. A's investment was thrice the investment of B and the period of his investment was two times the period of investment of B. If B received Tk. 4000 as profit, then their total profit is :
A Tk. 16,000
B Tk. 20,000
C Tk. 24,000
D Tk. 28,000
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project
A Decreases
B Increases
C Increases linearly
D Remains constant
Four staff members at a certain company worked on a project. The amounts of time that the furn staff members worked on the project were in the ratio 2 to 3 to 5 to 6 If one of the four staff members worked o the project for 30 hours, which of the following CANNOT be the total number of hours that the for staff members worked on the project?
A 192
B 96
C 160
D 240
Four staff members at a certain company worked on a project. The amounts of time that the furn staff members worked on the project were in the ratio 3 to 4 5 to 6 . If one of the four staff members worked on the project for 60 hours, which of the following CANNOT be the total number of hours that the four staff members worked on the project ?
A 540
B 270
C 180
D 288

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