[CLO-6] A company XYZ with a capital investment-$80,000, and the projected yearly savings are tabled below "Plan A". The MARR is 10% per year. End of Year Plan A Plan B (5) Savings (5) Savings 20,000 1 20,000 2 25,000 X 3 25,000 4 10,000 X 5 15,000 15,000 10,000 6 10,000 The company decided to change the plan of saving from A to B to get a discounted payback period equal to 4, what is the minimum value of X to achieve that? X

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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[CLO-6] A company XYZ with a capital investment-$80,000, and the projected yearly savings are tabled below "Plan A". The MARR is 10% per year.
End of Year
Plan A
Plan B
(S) Savings
(5) Savings
1
20,000
20,000
2
25,000
X
3
25,000
4
10,000
X
15,000
15,000
6
10,000
10,000
The company decided to change the plan of saving from A to B to get a discounted payback period equal to 4, what is the minimum value of X to achieve that?
X
Transcribed Image Text:Question 4 [CLO-6] A company XYZ with a capital investment-$80,000, and the projected yearly savings are tabled below "Plan A". The MARR is 10% per year. End of Year Plan A Plan B (S) Savings (5) Savings 1 20,000 20,000 2 25,000 X 3 25,000 4 10,000 X 15,000 15,000 6 10,000 10,000 The company decided to change the plan of saving from A to B to get a discounted payback period equal to 4, what is the minimum value of X to achieve that? X
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