Company A is planning to undertake a project requiring initial investment of $60000. The project is expected to generate $23000 per year in net cash flows for 4 years and desired rate-of-return is 10%.

question:

Payback period of the project is what ?

Net present value of the project is what ?

Al Amal company suffers from lack of funding for its project. Thus, this represents one of project management risks to company.

TRUE OR FALSE ?