Answer:
Project 1
Explanation:
The computation of the payback period is shown below:
As we know that
Payback period = Initial investment ÷ Net cash flow
For project 1
The payback period would be
= $60,000 ÷ $20,000
= 3 years
For project 2
The payback period would be
= $80,000 ÷ $20,000
= 4 years
Based on the payback period, project 1 should be chosen as the initial amount would be recovered in 3 years instead of 4 years shown in project 2
The process of discovering, evaluating, and controlling risks to an organization's resources and profits is known as risk management.
<h3>
What is Risk management?</h3>
The process of discovering, evaluating, and controlling risks to an organization's resources and profits is known as risk management. These dangers can be caused by a number of things, such as monetary unpredictability, legal responsibilities, technological problems, strategic management blunders, accidents, and natural calamities.
In order to reduce, monitor, and control the likelihood or impact of unpleasant events or to optimize the realization of possibilities, risk management involves the identification, evaluation, and prioritizing of risks. This is followed by the coordinated and efficient use of resources.
By early risk identification, staff members can lessen the possibility and severity of prospective project risks. There will be a plan of action in place in case something does go wrong. Employees can do this to prepare for the unexpected and improve project results.
To learn more about Risk management refer to:
brainly.com/question/4678268
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The individual stockholders face limited liability in the form of money
