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Title: A project manager is using the payback method to make the final decision on which project to underta
Post by: Louie928 on Dec 14, 2015
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 non-discounted payback of a project that has cash flows as shown in the table?

Year   Cash Flow
0   -$500,000
1   $50,000
2   $75,000
3   $150,000
4   $150,000
5   $750,000

A) 4.8 years
B) 4.1 years
C) 3.7 years
D) 5.0 years


Title: Re: A project manager is using the payback method to make the final decision on which project to und
Post by: flammable on Dec 16, 2015
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Title: Re: A project manager is using the payback method to make the final decision on which project to underta
Post by: Louie928 on Dec 21, 2015
Excellent, thx


Title: Re: A project manager is using the payback method to make the final decision on which project to underta
Post by: flammable on Dec 25, 2015
Excellent! Have a Merry Christmas :)