Describe the different organizational structures and specify the one most suitable for a project
fully giving your reasons for the selection. Use diagrams.
b. Two projects were being considered for implementation whose data was as flows:
Project A: Payback = 2.5 years; Year of full recovery = 2; Unrecovered cost at start of the
year = K250,000.
Project B: Payback = 2.5 years; Year of full recovery = 2; Unrecovered cost at start of the
year = K350,000.
i) Calculate the cash flow during the full recovery year for each project.
ii) Which project should be implemented and why?
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