Payback Period.docVIP

Payback Period/Net Cash Flow/NPV Questions -- Please explain Submitted by manuspmp on Fri, 10/23/2009 - 18:23 PMP / CAPM exam Question bank The following should be used for questions 15 through 17----------------------------------------------------------------------A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project manager’s estimate of the cash flow that will take place over the next five years.End of Year Cash Flow In Cash Flow Out1 0 500,0002 300,000 90,0003 400,000 100,0004 100,000 175,0005 50,000 35,00015. What is the payback period for this project?a. One yearb. Two yearsc. Three yearsd. Four years16. What is the net cash flow at the end of five years?a. $50,000b. - $50,000c. $850,000d. $100,00017. If the net present value for each of the cash flows were calculated at a 10% interest rate, the net present value cash flow at the end of five years would be:a. Greater than the total cash flow without the net present value appliedb. Less than the total cash flow without the net present value applied c. The same as the total cash flow without the net present value appliedd. Unable to be calculated with the information suppliedCan anyone please explain me the answers (The answers are the options in BOLD) Average: 0 Your rating: None ? Help with this ? Closing question ? Login or register to post comments 10321 reads Hi, ?Ya... the question Submitted by winson on Sun, 10/25/2009 - 14:07. Hi, ?Ya... the question seems to be vague... however, we may still try to figure out the answer... ?15. This one really not sure. Payback period after 3 years, seems the cash inflow is 700,000; but outflow is 690,000. So, not really sure why the answer is 3 years. ? 16. Net cash flow. just get the total of ca