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Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie companys current labor cost per

Erie company has 500 units of capacity for their traditional product, Emu, and buys one point

of automation. If Erie companys current labor cost per unit of Emu is $10, and Erie sells 1,000

units per year of Emu, what is the payback period for this investment?

The answer is supposed to be 1.6 years but I don't know how.

I thought (50014) / (1,000100.1) = 2 years

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