A Project Manager Is Using the Payback Method to Make

question 56

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 four years.What is the non-discounted payback of a project that has cash flows as shown in the table? $$\begin{array} { | l | l | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 250,000 \\\hline 1 & \$ 50,000 \\\hline 2 & \$ 60,000 \\\hline 3 & \$ 70,000 \\\hline 4 & \$ 80,000 \\\hline\end{array}$$

• A)3.875 years
• B)3.625 years
• C)3.750 years
• D)3.500 years

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The practice of recruiting, hiring, deploying, and managing an organization's employees.

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The core principles and ideals upon which an entire community exists and makes decisions, affecting behavior, traditions, and expectations.

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A collection of individuals or organizations that have an interest in or are affected by the outcomes of a project or company’s operations.