A machine is under consideration for investment. The cost of the machine is P25,000. Each year it operates, the machine will generate a savings of P15,000. Given an effective annual interest of 18%, what is the discounted payback period, in years, on the investment in the machine?

A machine is under consideration for investment. The cost of the machine is P25,000. Each year it operates, the machine will generate a savings of P15,000. Given an effective annual interest of 18%, what is the discounted payback period, in years, on the investment in the machine?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 4RQ

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Question

A machine is under
consideration for investment.
The cost of the machine is
P25,000. Each year it
operates, the machine will
generate a savings of P15,000.
Given an effective annual
interest of 18%, what is the
discounted payback period, in
years, on the investment in the
machine?

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