A machine is under consideration for investment. The cost of the machine is P25,000. Each year it operates, the machine will generate a savings of P15,000. Given an effective annual interest of 18%, what is the discounted payback period, in years, on the investment in the machine?
A machine is under consideration for investment. The cost of the machine is P25,000. Each year it operates, the machine will generate a savings of P15,000. Given an effective annual interest of 18%, what is the discounted payback period, in years, on the investment in the machine?
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
Problem 4RQ
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Question
![A machine is under
consideration for investment.
The cost of the machine is
P25,000. Each year it
operates, the machine will
generate a savings of P15,000.
Given an effective annual
interest of 18%, what is the
discounted payback period, in
years, on the investment in the
machine?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27d38c8a-02fb-4e13-8bad-243cfb8692da%2Fe4e103c4-df23-4938-95a2-ae103390906e%2Fx0h88mr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A machine is under
consideration for investment.
The cost of the machine is
P25,000. Each year it
operates, the machine will
generate a savings of P15,000.
Given an effective annual
interest of 18%, what is the
discounted payback period, in
years, on the investment in the
machine?
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