Question: Project managers should have a basic understanding of how the payback period plays an influential role when a project might be selected. (a)Briefly explain the

Project managers should have a basic understanding of how the payback period plays an influential role when a project might be selected.

(a)Briefly explain the concept of the payback period method used in project evaluation. Discuss the advantages and disadvantages of the method. Why is it necessary for project managers to have the basic knowledge in payback method?

(b)You have been tasked to calculate the payback period of two final options. You found that Project X has an initial investment of 100k and a payback period of 24 months, while Project Y has an initial investment of 120k and a payback period of 18 months. Which project should you recommend? Give your justification.

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