What is the payback period

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Reference no: EM131729038

1. What is the payback period if:

a) the project investment is $750,000

b) the income for the first year is $50,000 per quarter

c) the income for the second year is $75,000 per quarter

d) the income for the third year is $75,000 per quarter

e) the cost of capital is 3%. State your answer in number of months.

2. You ask a team member for the duration of a particular task on the project. They provide three values: Optimistic, Expected and Pessimistic. Using the beta distribution, determine the value you'd put in your schedule. Use proper rounding rules to the nearest integer.

Optimistic = 25

Expected = 50

Pessimistic = 75

Reference no: EM131729038

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