contestada

You've calculated that the payback
period for your solar panels is 10 years.
After 5 years, the electricity costs in your
area INCREASE. What happens to your
payback period?
A. The payback period does not change.
B. The payback period becomes impossible to calculate.
C. The payback period decreases.
D. The payback period stops.

Respuesta :

In the given situation, the payback period decreases as the electricity cost increases, i.e., option C is correct.

What is payback period?

The payback period is the amount of time required to recover the cost of an investment or to reach the breakeven point for an investor.

Shorter payback periods indicate more appealing investments, whereas longer payback periods indicate less desirable investments.

In the given situation, the payback period decreases as the electricity cost increases.

Thus, the correct option is C.

For more details regarding the payback period, visit:

https://brainly.com/question/13057308

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