Question: Determine the payback period for an embedded computer that has an initial value of $1,200,000, annual O&M costs of $15,000, and estimated revenue of $100,000

Determine the payback period for an embedded computer that has an initial value of $1,200,000, annual O&M costs of $15,000, and estimated revenue of $100,000 per year.With a 10% salvage of the initial investment. The rate of return of the equipment is 6% per year.


Required to develop a project during the next 8 years.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To determine the payback period for the embedded computer project we need to calculate how long it t... View full answer

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 Finance Questions!