Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Your company is starting a new product line that will require buying a new piece of manufa...

Your company is starting a new product line that will require buying a new piece of manufacturing equipment in Year 0 for $20 Your company is starting a new product line that will require buying a new

Your company is starting a new product line that will require buying a new piece of manufacturing equipment in Year 0 for $20

Your company is starting a new product line that will require buying a new piece of manufacturing equipment in Year 0 for $20,000. You expect the profit to be $4.000 in Year 1 and to grow by 5% per year each year after that. a) What is the simple payback period? b) Given an interest rate of 8%, what is the discounted payback period? c) If the company looks for a discounted payback period of 6 years or less, would they consider this a good investment?

Feb 07 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions