Payback period

R295

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In 35 minutes you will calculate it from the initial investment and the annual net benefit. You will also allow for running costs and for benefits that start later. And you will read payback against the limit and the project’s useful life.

SKU: PL-MCB-PRJ-36
Category:

Description

Who it’s for: Anyone who has to show, in money, whether a project was worth doing.

What happens in it: a short film shows a fit-out sold as paying back in under three years, the running costs nobody took off, and the real date. In Your call you make the decisions in a real case: preparing the business case for a rooftop solar installation at Red Mesa Cold Storage. It will cost R1,400,000. It should cut our electricity bills by R520,000 a year, and the maintenance and insurance it adds will cost R120,000 a year. The owners’ rule is that a project like this must pay back within 4 years, and they want to know how long it will take to get their money back. Then, in the boardroom, you make the case to Ezra, the project manager, in three questions.

How it works: five scenes in about 35 minutes: the data film, the lesson, Your call, practice with fresh numbers that mark themselves, and the boardroom. Finish all five for your certificate. It is course 1 of 5 in the Value and benefits season of the Project Management series.

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