Question
Payback period tells the time it takes to break even in an Blank______ sense. Discounted payback period tells the time it takes to break even in an Blank______ or financial sense.
Multiple choice question.
economic; economic
economic; accounting
accounting; economic
accounting; accounting
Multiple choice question.
economic; economic
economic; accounting
accounting; economic
accounting; accounting
Answers
GPT-4o mini
The correct answer is **accounting; economic**.
The payback period typically refers to the accounting perspective of when the initial investment is recovered, while the discounted payback period takes into account the time value of money, which aligns more with the economic perspective.
The payback period typically refers to the accounting perspective of when the initial investment is recovered, while the discounted payback period takes into account the time value of money, which aligns more with the economic perspective.