Use Payback analysis at 15% to select a system for the following System 1 system 2 13,000 system First cost $ 15,000 2.000 (Year 1 -5) NCF, $ per year 3,000 3,000 (year 6- 14) Maximum 7 14 life.years v Find the no-return payback for system one A. S Years v Find the no-return payback for system two? B. 6 years v Which system has the better payback period? C. system 1 v which system has longer payback period? D. system 2 E. 4 years F. 7 years
Use Payback analysis at 15% to select a system for the following System 1 system 2 13,000 system First cost $ 15,000 2.000 (Year 1 -5) NCF, $ per year 3,000 3,000 (year 6- 14) Maximum 7 14 life.years v Find the no-return payback for system one A. S Years v Find the no-return payback for system two? B. 6 years v Which system has the better payback period? C. system 1 v which system has longer payback period? D. system 2 E. 4 years F. 7 years
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 12E: Refer to Exercise 19.11. 1. Compute the payback period for each project. Assume that the manager of...
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