What term refers to the expected time it takes for an investment to return its initial cash outflow?

The term that refers to the expected time it takes for an investment to return its initial cash outflow is the Payback Period. This financial metric is crucial for assessing the risk and liquidity of an investment, as it calculates how long it will take for the investment to "pay back" the initial capital invested.

Understanding the Payback Period helps investors make decisions about whether or not the time frame aligns with their financial goals and risk tolerance. Investors typically prefer projects with shorter Payback Periods because they can recover their investment faster and reduce their exposure to potential risks associated with the project.

While terms like Return Period, Investment Period, and Cash Flow Period may seem relevant, they do not specifically capture the essence of how long it takes to recover the initial investment through cash inflows. This specificity is vital for clear financial analysis and decision-making in investment practices.