A Project Manager Is Using the Payback Method to Make

question 66

Multiple Choice

A project manager is using the payback method to make the final decision on which project to undertake. The company has a 15% required rate of return and expects a 5% 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) 3.9 years
• B) 4.3 years
• C) 4.6 years
• D) 4.1 years

---

Definitions:

U.S. Labor Laws

Regulations and statutes in the United States that govern the rights of workers and the obligations of employers, including aspects of employment, remuneration, and workplace safety.

Workplace Governance

Refers to the strategies, policies, and processes implemented by an organization to manage, direct, and control its various functions and workforce efficiently.

Competitive Markets

Markets characterized by a large number of buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes, fostering competition.

Mainstream Economics

The body of knowledge, theories, and models that represents the most widely accepted views and practices in the field of economics.