Payback Analysis

• Another important financial consideration is payback analysis
• The payback period is the amount of time it will take to recover the net dollars invested in a project
• Payback occurs when the cumulative discounted benefits and costs are greater than zero
• Many organizations want IT projects to have a fairly short payback period

• B

• Why Will An IT Project with a Payback Period of more than 2 years most likely be rejected ?