If it costs 20 000 to purchase what is its payback period


A new packaging machine will save Greene Cheese Pty. Ltd. $3000 per year in reduced spoilage, $2500 per year in labour, and $1000 per year in packaging material. The new machine will have additional expenses of $700 per year in maintenance and $200 per year in energy. If it costs $20 000 to purchase, what is its payback period? Assume that the savings are earned throughout the year, not just at year-end.

Request for Solution File

Ask an Expert for Answer!!
Mechanical Engineering: If it costs 20 000 to purchase what is its payback period
Reference No:- TGS02155429

Expected delivery within 24 Hours