A Project Manager Is Using the Payback Method to Make

question 92

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? $$\begin{array} { | l | l | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & -\$ 500,000 \\\hline 1 & \$ 50,000 \\\hline 2 & \$ 75,000 \\\hline 3 & \$ 150,000 \\\hline 4 & \$ 150,000 \\\hline 5 & \$ 750,000 \\\hline\end{array}$$

• A)3.9 years
• B)4.3 years
• C)4.6 years
• D)4.1 years

Comprehend how title and risk of loss transfer in various sales contracts.

Recognize the role and liabilities of common carriers in shipping contracts.

Identify the characteristics and implications of goods-in-bailment contracts.

Understand the conditions and implications of simple delivery contracts.

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Definitions:

Proprietary

Referring to a product or technology that is owned exclusively by a single company that restricts or controls its use and distribution.

Campaign Management

The planning, executing, tracking, and analyzing of marketing campaigns to promote products, services, or causes.

Data Mining

The process of searching for valuable business information in a large database, data warehouse, or data mart.

OLAP

Online Analytical Processing; a category of software tools that provides analysis of data stored in a database and supports complex analytical and ad-hoc queries, usually in multiple dimensions.