A new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38,000.Extra income associated with the new process is expected to be $62,000 per year. What is thediscounted payback period at i = 12% per year?2.843.232.254.52

Discounted payback period is an important capital budgeting tool. Here we firstly discount all the…

A new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38, Extra income associated with the new process is expected to be $62,000 per year. What is the discounted payback period at i = 12% per year? 2.84 3.23 2.25 4.52

A new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38, Extra income associated with the new process is expected to be $62,000 per year. What is the discounted payback period at i = 12% per year? 2.84 3.23 2.25 4.52

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

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Question

A new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38,000.
Extra income associated with the new process is expected to be $62,000 per year. What is the
discounted payback period at i = 12% per year?
2.84
3.23
2.25
4.52

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