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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Definitions:

Temporal Lobes

Regions of the cerebral cortex located beneath the lateral fissure on both cerebral hemispheres of the mammalian brain, involved in processing sensory input into derived meanings for the appropriate retention of visual memory, language comprehension, and emotion association.

Antisocial Personality

A personality disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Aggressiveness

A behavior characterized by assertiveness and possibly hostility or attack, often used to dominate or control a situation.

Manipulative Behaviour

Actions aimed at influencing or controlling others' actions or feelings through deceptive or indirect means, often for personal gain.