Nike has hired an external consultant like Crowe to provide a solution to their warehousing problem now that they sell so much in Nike.com. The project will cost the company $4,150,000 now, require $380,000 in support in year 1, and $235,000 in year 2. The company expects a benefit of $495,000 in year 1 increasing by 8% per year for the foreseeable future. What is the Simple Payback Period for this project? Answers: 9-10

5-6

8-9

6-7

7-8

and

Nike has hired an external consultant like Crowe to provide a solution to their warehousing problem now that they sell so much in Nike.com. The project will cost the company $4,150,000 now, require $380,000 in support in year 1, and $235,000 in year 2. The company expects a benefit of $495,000 in year 1 increasing by 8% per year for the foreseeable future. What is the Discounted Payback period, if the company MARR is 11%?

Answers:

11-12

10-11

12-13

13-14