A project has a $53000 first cost that returns $5000 per year over its 15 year life. It has a $12000 salvage value at the end of its 15 years. If the MARR is 8%, what is the payback period of this project in years?
A project has a $53000 first cost that returns $5000 per year over its 15 year life. It has a $12000 salvage value at the end of its 15 years. If the MARR is 8%, what is the payback period of this project in years?
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
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Transcribed Image Text:A project has a $53000 first cost that returns $5000 per year over its 15 year life. It has a $12000
salvage value at the end of its 15 years. If the MARR is 8%, what is the payback period of this
project in years?
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