IASSC ICYB Exam - Topic 8 Question 95 Discussion

Actual exam question for IASSC's ICYB exam

Question #: 95
Topic #: 8

[All ICYB Questions]

Training cost is $3,000 and a project required an initial investment of $12,000. If the project yields monthly savings of $1,800 beginning after 3 months, what is the payback period in months (before money costs and taxes)?

A4.17

B8.33

C11.33

D28.28

Show Suggested Answer

Suggested Answer: C

by Vince at Aug 13, 2025, 09:33 PM

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Elly

2 months ago

Totally agree, 8.33 makes sense with those numbers!

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Maryann

2 months ago

I think the payback period is around 8.33 months.

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Luisa

3 months ago

The total investment is $15,000. Monthly savings start after 3 months.

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Tom

3 months ago

Wait, are we sure about those savings? Sounds too good to be true.

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Caprice

3 months ago

Just did the math, and it checks out!

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Lezlie

4 months ago

I’m a bit confused about how to calculate the total savings before the payback period starts. Does it mean we just look at the monthly savings after the delay?

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Laura

4 months ago

I practiced a similar question where we had to account for delayed cash flows. I think the savings start after a few months, so we need to adjust for that.

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Wynell

4 months ago

I think we need to subtract the training cost from the initial investment first, right? That might change the payback calculation.

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Avery

4 months 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 starting.

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Ryan

4 months ago

Okay, I think I see the strategy. I just need to find how many months it takes for the total savings to equal the initial investment. Let me grab my calculator and work through this step-by-step.

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Gianna

5 months ago

I'm a little confused on how to calculate the payback period here. Is there a formula I'm missing? I'll have to review the material and see if I can figure this out.

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Audry

5 months ago

I've got this! The key is to find how long it takes for the monthly savings to equal the initial investment. I'll do the math and see which answer choice matches.

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Latonia

5 months ago

Hmm, this looks tricky. I'm not sure how to approach this one. Maybe I should try drawing out a timeline to visualize the cash flows.

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Phillip

5 months ago

Okay, let's think this through step-by-step. We have the initial investment, the monthly savings, and the time before the savings start. I think I can figure out the payback period using that information.

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Pilar

6 months ago

I disagree, I believe the answer is B) 8.33.

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Deandrea

6 months ago

B) 8.33 seems more reasonable to me. I'm not sure the savings will start so soon after the initial investment.

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Michal

6 months ago

I think the answer is A) 4.17. The payback period is the time it takes for the project to generate enough savings to cover the initial investment, and with the given information, that works out to 4.17 months.

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