Payback Period Quiz

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Test your knowledge on the payback period concept in finance!

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Daniellia Smith

Jamaica

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1	Daniellia Smith April 27, 2025	% 20	11:24

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Payback Period QuizOnline version Test your knowledge on the payback period concept in finance! by Daniellia Smith 1 If an investment costs $1,000 and returns $250 per year, what is the Payback Period? a 2 years b 3 years c 4 years d 5 years 2 A company invests $7,500 and expects different cash flows: $2,000 in year 1, $3,000 in year 2, and $3,000 in year 3. In how many years is the investment recovered? a 2 years b 2.8 years c 3 years d 1.5 years 3 A business invests $6,000. It earns $1,000 in the first year, $2,000 in the second year, and $3,000 in the third year. In how many years will the investment be fully paid back? a 2 years b 2.5 years c 3 years d 1.5 years 4 An investment costs $2,400 and earns $600 per year. What is the Payback Period? a 3 years b 4 years c 5 years d 6 years 5 An investment costs $12,000. It earns the following cash inflows: Year 1: $3,000 Year 2: $3,500 Year 3: $4,000 Year 4: $2,500 In which year will the investment be fully recovered, and what is the exact Payback Period (in years)? a 3.6 years b 4 years c 3 years d 3.25 years

Payback Period QuizOnline version

Test your knowledge on the payback period concept in finance!

by Daniellia Smith

If an investment costs $1,000 and returns $250 per year, what is the Payback Period?

2 years

3 years

4 years

5 years

A company invests $7,500 and expects different cash flows: $2,000 in year 1, $3,000 in year 2, and $3,000 in year 3. In how many years is the investment recovered?

2 years

2.8 years

3 years

1.5 years

A business invests $6,000. It earns $1,000 in the first year, $2,000 in the second year, and $3,000 in the third year. In how many years will the investment be fully paid back?

2 years

2.5 years

3 years

1.5 years

An investment costs $2,400 and earns $600 per year. What is the Payback Period?

3 years

4 years

5 years

6 years

An investment costs $12,000. It earns the following cash inflows: Year 1: $3,000 Year 2: $3,500 Year 3: $4,000 Year 4: $2,500 In which year will the investment be fully recovered, and what is the exact Payback Period (in years)?

3.6 years

4 years

3 years

3.25 years

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Payback Period Quiz

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About this activity

Created by

Download the paper version to play

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Payback Period QuizOnline version

by Daniellia Smith

If an investment costs $1,000 and returns $250 per year, what is the Payback Period?

A company invests $7,500 and expects different cash flows: $2,000 in year 1, $3,000 in year 2, and $3,000 in year 3. In how many years is the investment recovered?

A business invests $6,000. It earns $1,000 in the first year, $2,000 in the second year, and $3,000 in the third year. In how many years will the investment be fully paid back?

An investment costs $2,400 and earns $600 per year. What is the Payback Period?

An investment costs $12,000. It earns the following cash inflows: Year 1: $3,000 Year 2: $3,500 Year 3: $4,000 Year 4: $2,500 In which year will the investment be fully recovered, and what is the exact Payback Period (in years)?

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