Unlimited Access

Get Unlimited Contributor Access to the all ExamTopics Exams!
Take advantage of PDF Files for 1000+ Exams along with community discussions and pass IT Certification Exams Easily.

Get Unlimited Access

Six-Sigma Discussions

Exam ICYB topic 1 question 3 discussion

Actual exam question from Six Sigma's ICYB

Question #: 3
Topic #: 1

[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)?

A. 4.17
B. 8.33
C. 11.33
D. 28.28

Show Suggested Answer

Suggested Answer: C 🗳️

by mini0616 at April 8, 2024, 5:20 p.m.

Comments

Submit Cancel

mini0616

3 months ago

Initial Investment: $12,000 Training Cost: $3,000 (assuming this is part of the initial investment) Monthly Savings: $1,800 (starting from the 4th month) Total initial investment = $12,000 + $3,000 = $15,000 Each month, the project saves $1,800. The payback period can be calculated as follows: Payback Period = Total Initial Investment / Monthly Savings Payback Period = $15,000 / $1,800 per month ≈ 8.33 months

upvoted 1 times

...