Examveda
Examveda

Payback period is multiplied for constant increase in yearly future cash flows to calculate

A. cash value of money

B. net initial investment

C. net future value

D. time value of money

Answer: Option B

Solution(By Examveda Team)

Payback period is multiplied for constant increase in yearly future cash flows to calculate net initial investment. Net investment is the amount spent by a company or an economy on capital assets, or gross investment, less depreciation. Net investment helps give a sense of how much money a company is spending on capital items used for operations, such as property, plants, equipment, and software.

Join The Discussion

Related Questions on Management Accounting