Which method (s) of project analysis is (are) best suited for use by a department manager who has no knowledge of time value of money but can estimate the cash flows of small projects with short lives fairly accurately?

Question

Aldo Johnston

Business

27 July, 11:50

Which method (s) of project analysis is (are) best suited for use by a department manager who has no knowledge of time value of money but can estimate the cash flows of small projects with short lives fairly accurately?

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Answers (1)

Know the Answer?

Piper · Answer 1

Answer: The Payback Method.

Explanation:

The manager with his skill in business investment returns estimation can make use of the payback Method for analysis. The Payback Method of analysis is a method used to estimate how fast an investment in a business can yield the original capital invested into the business. A business investment with a shorter payback period is very desirable by most investors.