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Imagine that you are Joe Blow, Executive VP of Football Operations for the Denve

ID: 2783273 • Letter: I

Question

Imagine that you are Joe Blow, Executive VP of Football Operations for the Denver Broncos, and you have a pressing decision to make.   You have the chance to land #18 - Peyton Manning - a sure Hall of Fame player who might take the Broncos to a higher level.   Or, you could talk Trent Dilfer out of retirement. Sure, Trent is 40 years old, but he was never that fast or mobile, he HAS won a Super Bowl and you could get him for a song -- his contract might be 1/10th the cost of Peyton’s and you could cover that cost in a heartbeat.   Is payback period the definitive tool to help you make your decision on which player (Peyton or Trent) to sign?

Question 3 options:

True

False

Save

True

False

Explanation / Answer

false

Payback period is not the definitive method because the cash flows beyond payback period are not considered, which can be huge for Peyton Manning

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