A computer call center is going to replace all of its incandescent lamps with more energy-efficient fluorescent
Question:
a. What is the IRR of this investment?
b. What is the simple payback period of the investment?
c. Is there a conflict in the answers to Parts (a) and (b)? List your assumptions.
d. The simple payback "rate of return" is 1/0. How close does this metric come to matching your answer in Part (a)?
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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