A Project Manager Is Using the Payback Method to Make

question 2

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 discounted payback of a project that has cash flows as shown in the table?

• A) 3.4 years
• B) 2.6 years
• C) 5.0 years
• D) 4.2 years

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Definitions:

Bilevel Positive Airway Pressure (BiPAP)

A respiratory therapy using a machine to deliver two levels of pressure to a patient's airways, aiding in breathing for those with certain respiratory conditions.

Continuous Positive Airway Pressure (CPAP)

Ventilatory support used to treat patients with obstructive sleep apnea, patients with congestive heart failure, and preterm infants with underdeveloped lungs.

Pneumothorax

Collection of air or gas in the pleural space.

Chest Tube Insertion

A medical procedure that involves the placement of a tube into the chest to remove air, fluid, or pus from the pleural space.