Question

A capital investment evaluation method that measures the expected time for the present value of the net cash flows to equal the initial cost of the investment is the:

Answer 1

The correct answer is: Net present value (NPV)

Step-by-step explanation:

Answer 2

The Payback Method.

Step-by-step explanation:

The pay back period is the length of time required for the total cash flows to equal the initial capital investment.

Thus the Payback Method is the investment evaluation method that measures the expected time for the present value of the net cash flows to equal the initial cost of the investment.