48. Video Solution Home Innovations is evaluating a new product design.

The estimated receipts and disbursements associated with the new product are shown below. MARR is 10 percent/year.

a. What is the discounted payback period for this investment?

b. If the maximum attractive DPBP is 3 years, what is the decision rule for judging the worth of this investment?

c. Should Home Innovations buy the gang punch based on DPBP?
Section 4.4.2 Discounted Payback Period for Multiple Alternatives

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End of Year Receipts Disbursements 0 $0 $1,000 2346 1 2 $600 $300 $600 $300 $700 $300 $700 $300 5 $700 $300