Question
A(n)
(decrease/increase) in the size of the first cash inflow will decrease the payback period, all else held constant.
(decrease/increase) in the size of the first cash inflow will decrease the payback period, all else held constant.
Answers
GPT-4o mini
A(n) **increase** in the size of the first cash inflow will decrease the payback period, all else held constant.
When the initial cash inflow is larger, it means that you recover the initial investment faster, thereby shortening the payback period. Conversely, a decrease in the size of the first cash inflow would lengthen the payback period.
When the initial cash inflow is larger, it means that you recover the initial investment faster, thereby shortening the payback period. Conversely, a decrease in the size of the first cash inflow would lengthen the payback period.