An agile initiative requires an initial investment of $150,000 and is forecast to generate $50,000 of net value each year. Ignoring discounting, what is the simple payback period?

Question

Accepted Answer

3 years. Simple payback period = Initial Investment ÷ Annual Net Value = $150,000 ÷ $50,000 = 3 years. Option C inverts the ratio, and D multiplies incorrectly — both are common calculation errors.

An agile initiative requires an initial investment of $150,000 and is forecast to generate $50,000 of net value each year. Ignoring discounting, what is the simple payback period?

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