USE EXCEL TO SOLVE
You are given the following financial data about a new system to be implemented at a company:
Investment cost at n = 0: $23,000
Investment cost at n = 1: $18,000
Useful life: 10 years
Salvage value (at the end of 11 years): $7,000
Annual revenues: $19,000 per year
Annual expenses: $6,000 per year
MARR:10%
Note: The first revenues and expenses will occur at the end of year 2.
(a) Determine the conventional-payback period.
(b) Determine the discounted-payback period.