Question: A new machine will cost $8,000, but it will result in savings of $2,000 per year. What is the payback time in years?

A new machine will cost $8,000, but it will result in savings of $2,000 per year. What is the payback time in years?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

1. Calculate the NPV of Bay Area Telephone's proposed bond refunding. 2. What is the importance of each of the qualitative issues raised by members of Bay Area's board regarding the refunding...

Q:

John Whiteck, financial vice president of Fox River Telephone Company, has just begun reviewing the minutes of the companys November 2016 board of directors meeting. The major topic discussed at the...

Q:

Fox River Telephone Company John Whiteck, financial vice president of Fox River Telephone Company, has just begun reviewing the minutes of the companys November 2016 board of directors meeting. The...

Q:

Which technique would be most precise in determining the variable cost component of manufacturing overhead costs? Delphi method High-low method Regression analysis Scatter-graph analysis Question 5...

Q:

Which technique would be most precise in determining the variable cost component of manufacturing overhead costs? Delphi method High-low method Regression analysis Scatter-graph analysis Question 5...

Q:

QUESTION 5.5 (35 Marks) South Africa Carbon Capture Systems (Pty) Ltd ('SACCS' or 'the company') is a company that has a 31 December year-end. The company is NOT a small business corporation. The...

Q:

QUESTION 1 Roten Manufacturing Company is considering an investment on a machine for producing auto parts. The machine costs $250,000 today, will have a five-year life and will be depreciated over a...

Q:

Please indicate correct answer only Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows Direct materials-46 Direct labor-44 Variable...

Q:

Information for Questions 32-39: Carla's Citrus packs and ships high-quality oranges, grapefruit, and other fruit to retailers in the U.S. Carla has been experiencing an increase in demand for its...

Q:

The graph of y = f(x) is shown below (dashed curve). Manipulate the green draggable points to obtain the graph of y = f(x + 4) 5 (solid curve). Provide your answer below: -10 -5 1 1 10 0 -10 5 10

Q:

Jorge Company bottles and distributes B-lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 77cents per bottle. For the year 2014,...

Q:

March 6 Cash 2,500 Unearned Fees 2,500 Which of the following is the best explanation for this journal entry? a. Performed services for which cash is owed. b. Paid cash in advance for services to be...

Q:

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...