A Project Manager Is Using the Payback Method to Make

question 22

Multiple Choice

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the non-discounted payback of a project that has cash flows as shown in the table?

• A)3.5 years
• B)2.6 years
• C)5.0 years
• D)4.2 years

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