GAQM CLSSGB-001 Exam - Topic 1 Question 76 Discussion

Actual exam question for GAQM's CLSSGB-001 exam

Question #: 76
Topic #: 1

Training cost $6,500 and a project required an initial investment of $47,500. If the project yields monthly savings of $3,500 beginning after 4 months, what is the payback period in months, before money costs and taxes?

A9.7

B15.4

C19.4

D23.7

Show Suggested Answer

Suggested Answer: C

by Francine at Jul 10, 2025, 05:15 AM

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Jennifer

4 months ago

Monthly savings start after 4 months, don’t forget that!

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Tula

4 months ago

Totally agree, 19.4 makes sense with the savings!

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Deane

4 months ago

Wait, how do we know it’s 19.4? Seems off.

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Jacklyn

4 months ago

Initial investment is $47,500, training cost $6,500.

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Heike

4 months ago

Payback period is around 19.4 months, right?

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Mica

5 months ago

I feel like the payback period should be straightforward, but I’m confused about how to handle the initial investment and the training cost together.

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Beatriz

5 months ago

If the project starts saving after 4 months, I guess we need to add those months to the total payback calculation. I’m leaning towards option C, but I’m not completely sure.

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Tawanna

5 months ago

I think we did a similar question where we had to subtract initial costs from savings, but I can't recall the exact formula for the payback period.

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Yoko

5 months ago

I remember we calculated payback periods in class, but I’m not sure how to factor in the delay of 4 months before savings start.

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Martin

5 months ago

I'm pretty confident I can solve this. The key is to remember that the payback period is the time it takes for the cumulative savings to equal the total investment. With the given information, I should be able to work through this step-by-step.

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Emelda

6 months ago

Wait, is the 4-month delay before the savings start included in the payback period, or do I need to add that on top of the calculated payback period? I'm a little confused about how to handle that part.

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Azzie

6 months ago

Okay, I think I've got this. The total investment is $47,500 + $6,500 = $54,000. The monthly savings are $3,500, and the savings start after 4 months. So the payback period should be (54,000 / 3,500) + 4 = 19.4 months.

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Elenor

6 months ago

Hmm, I'm a bit unsure about how to handle the 4-month delay before the savings start. Do I need to account for that somehow in the calculation?

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Dana

6 months ago

This looks like a straightforward payback period calculation. I'll start by finding the total investment cost, then divide that by the monthly savings to get the payback period.

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