Lipsion Ltd company is thinking about investing in one of two potential new products for sale. The projections are as follows: year revenue/ (product s) revenue/ (product V) 0 (150,000) outlay (150,000) outlay 1 14,000 15,000 2 24,000 25,333 3 44,000 52,000 4 84,000 63,333 Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.
Lipsion Ltd company is thinking about investing in one of two potential new products for sale. The projections are as follows: year revenue/ (product s) revenue/ (product V) 0 (150,000) outlay (150,000) outlay 1 14,000 15,000 2 24,000 25,333 3 44,000 52,000 4 84,000 63,333 Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Lipsion Ltd company is thinking about investing in one of two potential new products
for sale. The projections are as follows:
| year | revenue/ (product s) | revenue/ (product V) |
| 0 | (150,000) outlay | (150,000) outlay |
| 1 | 14,000 | 15,000 |
| 2 | 24,000 | 25,333 |
| 3 | 44,000 | 52,000 |
| 4 | 84,000 | 63,333 |
Calculate the payback period for both products in years and months, not as a
decimal. Please present answer to nearest month.
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