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A Project Manager Is Using the Payback Method to Make

Question 2

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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 discounted payback of a project that has cash flows as shown in the table? 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 discounted payback of a project that has cash flows as shown in the table? A) 3.4 years B) 2.6 years C) 5.0 years D) 4.2 years


A) 3.4 years
B) 2.6 years
C) 5.0 years
D) 4.2 years

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