A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. What is the simple payback period? What is the compounded payback period at an interest rate of 12%?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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For each of the following problems, (a) draw the cash flow diagram (as needed); (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box.

 

 

  1. A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. What is the simple payback period? What is the compounded payback period at an interest rate of 12%?

 

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