Project management - the payback period
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Project cost, monthly return
A shorter payback period is attained if ________ is reduced or if ________ is increased.
Cost divided by savings
How is the annual payback Period calculated?
Estimated project cost divided by monthly return
How is the monthly payback period calculated?
Payback period
The amount of time required to earn back the cost of doing the project
Discounted
When adding the consideration of the time value of money to a payback period model cash flows are ________ to reflect a more accurate estimate for the payback period.
Unknown
Will including time value of money in the payback period equation have a known or unknown impact on which of two projects being compared will be chosen?