The correct answer is C. payback period.
The payback period is the amount of time it takes for an investment to recover its initial cost. It is calculated by dividing the initial cost of the investment by the annual cash flow. The payback period is a simple and intuitive measure of investment profitability, but it does not take into account the time value of money.
The original period is the period of time during which the investment is made. The investment period is the period of time during which the investment is held. The forecasted period is the period of time during which the investment is expected to generate cash flow.
Here is a more detailed explanation of each option:
- Original period: The original period is the period of time during which the investment is made. This is the period of time from the date the investment is made to the date the investment is completed. The original period is not relevant to the calculation of the payback period.
- Investment period: The investment period is the period of time during which the investment is held. This is the period of time from the date the investment is made to the date the investment is sold. The investment period is not relevant to the calculation of the payback period.
- Forecasted period: The forecasted period is the period of time during which the investment is expected to generate cash flow. This is the period of time from the date the investment is made to the date the investment is expected to stop generating cash flow. The forecasted period is not relevant to the calculation of the payback period.
- Payback period: The payback period is the amount of time it takes for an investment to recover its initial cost. It is calculated by dividing the initial cost of the investment by the annual cash flow. The payback period is a simple and intuitive measure of investment profitability, but it does not take into account the time value of money.
I hope this explanation is helpful. Please let me know if you have any other questions.