Question

the payback period for the equipment required for any alternative energy is how long it takes you to make up the cost of the equipment in energy cost savings. if the price of energy in your area increases, what happens to the payback period? the payback period decreases. you never get your money back.

Explanation:

The payback period is the time to recoup equipment cost via energy savings. If energy price increases, energy savings per period increase. So, the time to make up the equipment cost (payback period) will decrease, as more savings are gained per period. The "You never get your money back" option is incorrect because even with higher energy prices, savings still occur to recoup the cost (unless savings are zero, which isn't the case here as energy price increase means savings from alternative energy increase).

Answer:

The payback period decreases.