Question

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?

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.