2. A company can manufacture a product using hand tools. Tools will cost $ 1,000, and the manufacturing cost per unit will be $ 1.50. As an alternative, an automated system will cost $15,000 and the manufacturing cost per unit will be $ 0.50. With an anticipated annual volume of 5,000 units and neglecting interest, the payback period (yr) for the automated system is most nearly (A) 2.8 (B) 3.6 (C) 15.0 (D) never 3. For problem 2, what is the payback period (yr) taking into account the interest lost on the capital invested if the annual interest rate is 5 % per year? (A) 2.4 (B) 2.6 (C) 3.3 (D)4.5
2. A company can manufacture a product using hand tools. Tools will cost $ 1,000, and the manufacturing cost per unit will be $ 1.50. As an alternative, an automated system will cost $15,000 and the manufacturing cost per unit will be $ 0.50. With an anticipated annual volume of 5,000 units and neglecting interest, the payback period (yr) for the automated system is most nearly (A) 2.8 (B) 3.6 (C) 15.0 (D) never 3. For problem 2, what is the payback period (yr) taking into account the interest lost on the capital invested if the annual interest rate is 5 % per year? (A) 2.4 (B) 2.6 (C) 3.3 (D)4.5
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Note:- I need only question 3 answer. ASAP
2. A company can manufacture a product using hand tools. Tools will cost $ 1,000, and the
$15,000 and the manufacturing cost per unit will be $ 0.50. With an anticipated annual
volume of 5,000 units and neglecting interest, the payback period (yr) for the automated
system is most nearly
(A) 2.8
(B) 3.6
(C) 15.0
(D) never
3. For problem 2, what is the payback period (yr) taking into account the interest lost on the capital invested if the annual interest rate is 5 % per year?
(A) 2.4
(B) 2.6
(C) 3.3
(D)4.5
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