CIPS Defining Business Needs L4M2 Question # 55 Topic 6 Discussion

CIPS Defining Business Needs L4M2 Question # 55 Topic 6 Discussion

L4M2 Exam Topic 6 Question 55 Discussion:
Question #: 55
Topic #: 6

To calculate the estimated annual payback period, a buyer will need to know the estimated annual savings made from implementing the option, and also the estimated costs. Is this statement correct?


A.

Yes, the calculation will be the estimated total costs divided by the estimated annual savings


B.

No, the calculation will be the estimated total costs multiplied by twelve


C.

Yes, the calculation will be the estimated annual savings added to the estimated total costs


D.

No, the calculation will be the estimated annual savings multiplied by the rate of inflation


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