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Training cost is $4,000 and a project required an initial investment of $30,000. If the project yields monthly savings of $2,000 beginning after 3 months, what is the payback period in months (before money costs and taxes)?
Suggested Answer: A
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34 comments · newest first
SU
Suzan
10 months ago
I thought it would be shorter, but yeah, 27 makes sense.
TH
Thad
11 months ago
Just did the math, 27 months checks out!
SH
Sherita
11 months ago
Wait, are we sure about those numbers? Seems off.
RU
Rupert
11 months ago
Totally agree, it adds up to that.
JE
Jess
11 months ago
The payback period is 27 months!
AL
Alexia
12 months ago
I’m a bit confused about how to handle the first three months with no savings. Does that mean we start counting the payback period after that?
CA
Cammy
12 months ago
I practiced a similar question where we had to account for savings starting after a few months. I think it might be around 27 months, but I could be wrong.
DI
Dianne
12 months ago
I think we need to add the training cost to the initial investment, so that's $34,000 total. Then we can figure out how many months it takes to recover that.
AN
Anjelica
1 year ago
I remember something about calculating payback periods, but I'm not sure how to factor in the initial investment and the delay in savings.
TA
Tarra
1 year ago
Wait, what? I'm a bit confused. Do we need to factor in the training cost or just the initial investment? I want to make sure I understand this properly before attempting to solve it.
MA
Marjory
1 year ago
Hmm, this looks tricky. I'm not sure how to approach it. Maybe I should review the formula for payback period again before trying to solve it.
RI
Rickie
1 year ago
Okay, let's think this through step-by-step. We have the initial investment, the monthly savings, and we need to find the payback period. I think I can work this out.
BU
Buddy
1 year ago
This seems straightforward. I just need to calculate the total savings over time until it equals the initial investment. I'm confident I can get the right answer.
BR
Brunilda
1 year ago
This one seems tricky, but I think I can figure it out if I break it down step-by-step.
CO
Cordelia
1 year ago
I'm pretty confident I know the answer to this one. The "managed strategy" objective is all about delivering value through incremental changes, so I'm going with option A.
LE
Lenna
1 year ago
I remember seeing a question about video quality in practice, but I can't recall if color saturation really impacts pixelation like this.
BE
Bettyann
1 year ago
I bet the person who wrote this question is an accountant with a twisted sense of humor. 'No money costs and taxes' - yeah, right. I'm sticking with option C, 27 months.
GE
Gertude
1 year ago
Yeah, option C sounds like the best answer here.
MI
Mitzie
1 year ago
I think so too, let's go with option C.
AI
Aimee
1 year ago
I agree, option C seems like the most reasonable choice.
JU
Juan
1 year ago
Hold up, did anyone else notice the 'no money costs and taxes' part? This is going to be a breeze! I'm going with option A, 10 months.
AN
Andra
1 year ago
Yes, option A, 10 months, makes the most sense.
CO
Cornell
1 year ago
I think option A is the best answer too.
EM
Emilio
1 year ago
I agree, option A seems like the correct choice.
AL
Alesia
1 year ago
This is a tricky one, but I'm leaning towards option B. 20 months feels more realistic given the monthly savings.
MA
Margart
1 year ago
Hmm, I'm not so sure about that. I think option D, 33 months, is the correct answer. Let me double-check the calculations.
FE
Fernanda
1 year ago
Let's calculate it again to be sure.
AL
Alayna
1 year ago
I believe it's option A, 10 months.
MA
Marlon
1 year ago
I'm not sure, maybe we should double-check the calculations.
LY
Lynna
1 year ago
I think option D, 33 months, is correct.
AL
Alida
1 year ago
I'm going with option C. 27 months seems like the right payback period based on the information provided.
BU
Buddy
2 years ago
Actually, I think the answer is C) 27. We need to consider the training cost as well, so the total investment is 30,000 + 4,000 = 34,000. Then the payback period would be 34,000 / 2,000 = 17 months.
ME
Melda
2 years ago
I agree with Becky. The payback period is calculated by dividing the initial investment by the monthly savings, so it should be 30,000 / 2,000 = 15 months.
BE
Becky
2 years ago
I think the answer is A) 10.