Cash Payback Technique: Definition & Formula


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question 1 of 3

What is a capital project?

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1. What is a capital expense?

2. What is the cash payback technique?

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About This Quiz & Worksheet

This quiz/worksheet incorporates the basics of the cash payback technique and the terms related to it, making for a simple and efficient way of seeing how you're progressing.

Quiz & Worksheet Goals

Within this quiz/worksheet, you'll find questions on the following:

  • Capital project
  • Capital expense
  • Cash payback technique
  • Cash payback period
  • Ideal length of time for cash payback

Skills Practiced

  • Distinguishing differences - compare and contrast capital project and capital expense
  • Defining key concepts - ensure that you can accurately define the cash payback technique and cash payback period
  • Information recall - access the knowledge you've gained regarding the best length of time for cash payback

Additional Learning

To learn more about this method, look over the accompanying lesson titled Cash Payback Technique: Definition & Formula. This lesson consists of the following objectives:

  • Understand how the cash payback technique can help businesses with investments
  • Know the formula for the cash payback technique
  • Learn about what constitutes a capital project