Payback period of the automation


Problem:

By automating its shop floor, your company expects to save $81,000.00 annually.

Required:

Question: If the automation costs $225,000.00, what is the payback period of the automation?

  • 2.78
  • 2.23
  • 3.19
  • 2.89
  • 2.49

Note: Explain the solution in detail.

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Finance Basics: Payback period of the automation
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