"Carol Rollins, owner of Carollins, is considering buying an energy efficient oven for her restaurant. However, she is concerned that the cost savings adequately offset the purchase price; she would prefer the project to have no more than a 2.5 year payback period. She is basing her decision on the following information:

Project Cost: $23,500

Cost Savings

Required:
1. Determine if Ms. Rollins should invest in this over.
2. If there was an estimated cash savings of $4,500 for each year, would this be purchased, based on the paybackcriterion?

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Y ears Energy Maintenance Total $2000 $2.500 $3.000 S3.000 $3.000 1,000 S4.000 S4.000 3.0003.000 S5.000S5.500 2.000 5,500 .000