(LG 4.5) A new packaging machine will save Greene Cheese Ltd. $3000 per year in reduced spoilage, $2500 per year in labour, and $1000 per year in pack- aging material. The new machine will have additional expenses of $700 per year in maintenance and $200 per year in energy. If it costs $20 000 to purchase, what is its payback period? Assume that the savings are earned throughout the year, not just at year-end.

(LG 4.5) A new packaging machine will save Greene Cheese Ltd. $3000 per year in reduced spoilage, $2500 per year in labour, and $1000 per year in pack- aging material. The new machine will have additional expenses of $700 per year in maintenance and $200 per year in energy. If it costs $20 000 to purchase, what is its payback period? Assume that the savings are earned throughout the year, not just at year-end.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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