Fringe benefits vacation sick leave insurance etc cost the, Business Economics

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Fringe benefits vacation sick leave insurance etc cost the

The local hospital has just implemented a totally automated switchboard that cost $205,000 to install. The switchboard replaced four operators who were paid $15K annually. Fringe benefits (vacation, sick leave, insurance, etc.) cost the hospital 42% of each annual salary. Determine the payback period for the new switchboard. (Answer: 2.4 years)

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