Assuming that the initial project investment is $28,500 in year 0, and that $10,000 in benefits accrued annually, calculate the payback period. What actions would you take and what is your rationale based on good project management principles?

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24 May, 00:22

Assuming that the initial project investment is $28,500 in year 0, and that $10,000 in benefits accrued annually, calculate the payback period. What actions would you take and what is your rationale based on good project management principles?

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Deangelo Dalton · Answer 1

Payback period = 2.85 years.

Explanation:

Payback period is the cost of investment divided by annual cash flow.

Payback period = 28500 / 10000 = 2.85, approx 3 years.

The shorter the payback period the more desirable investment and longer the pay back period, the less desirable it is.

According to me time-line is very in project handling, which event to do first and which activity do last, this gives us cost benefit analysis.

First you set your goals to achieve the completion of project by maximum utilize your resource effectively and efficiently.

Manage resources, assign task and duties.

Face outcomes take responsibilities for successful of project.