Engineering Board Exam Reviewer · Benefit-Cost Ratio and Payback Period · easy
A project costs P800,000 and produces net savings of P120,000 per year. Find the simple payback period.
- 8 years
- 6 years
- 6.67 years
- 7.5 years
Answer
C. 6.67 years
Solution
Payback = investment annual savings= 800,000120,000=6.67 years.
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