Question

The payback period of a project: a. On the contrary of the internal rate of return, only depends on the project's cash flows b. Like the internal rate of return, only depends on the project's cash flow.

Answer 1

The payback period of a project is a method used in business to evaluate the time it will take for an investment to recover its initial cost. It only depends on the project's cash flows.

Step-by-step explanation:

The payback period of a project is a method used in business to evaluate the time it will take for an investment to generate enough cash flows to recover the initial cost. It is a measure of how quickly the project will pay back its initial investment. The payback period only depends on the project's cash flows, not on factors such as the expected rate of return or the risk involved.