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

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? (12) (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. ( Total / Jumlah: 20 )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

3. 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...

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...

Project managers should have a basic understanding of how the payback period plays an influential role when a project might be selected. the basic knowledge in payback method? initial investment of...

3. You just got hired by McKinsey & Company as a financial consultant and they're paying you an egregious amount of money. Accordingly, they have you working on the tough projects like this one......

3. You just got hired by McKinsey & Company as a financial consultant and they're paying you an egregious amount of money. Accordingly, they have you working on the tough projects - like this one......

Please show all work on excel You just got hired by McKinsey & Company as a financial consultant and theyre paying you an egregious amount of money. Accordingly, they have you working on the tough...

Compute the crossover rate for the two mutually exclusive projects and compare this rate to the projects WACC. Before performing any further analysis, can you predict whether the NPV and the IRR will...

1. You just got hired by McKinsey & Company as a financial consultant and they're paying you an egregious amount of money. Accordingly, they have you working on the tough projects - like this one......

Please answer in excel and show formulas 1. You just got hired by McKinsey \& Company as a financial consultant and they're paying you an egregious amount of money. Accordingly, they have you working...

If an insurance company decides to offer a corporate customer a private pension fund, how would this change the balance sheet of the insurance company?

You are taking a $2000 loan. You will pay it back in four equal amounts, paid every 6 months starting 3 years from now. The interest rate is 6% compounded semiannually. Calculate: (a) The effective...

if there is no dissolution date for the partnership, what rights does a withdrawing partner have?

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...