Question: can you please explain how we got 6 years for payback period? Explanation: In present case, ROI= {(39-21)/99}*100 ROI=18.1818182 Thus payback period= 6 years Return

can you please explain how we got 6 years for payback period?

Explanation:

In present case,

ROI= {(39-21)/99}*100

ROI=18.1818182

Thus payback period= 6 years

Return on Investment (ROI)

  • Evaluation of ROI
  • Determine the ROI based on the following:
  • Normal retail cost of units $99
  • Discounted cost per unit to organization $21
  • Billed unit sales $39

Determine the payback period based on ROI.

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