Question

A company is considering several investment opportunities. The investments have been evaluated using payback period and break-even time. Only one project will be chosen and time value of money is important. The company should choose the project which the:_______.

Answer 1

Break-even time is the shortest

Step-by-step explanation:

Break-even time is an investment time base measurements which is used to evaluate the amount of time required before the present value of the net cash flows from an investment equals its initial cost. Thus, in this the project, the project with shortest break even time should be chosen by the company since time value of money is considered.