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Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 9%/ year. Model
Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 9%/ year.
Model 127B | Model 334A | |||
Initial Investment | $45,000 | $80,000 | ||
Estimated Life | 8 | 5 | ||
End of Life Salvage | $9,000 | $0 | ||
Annual Income | $19,900 | $26,000 | ||
Annual Expense | $10,400 | $6,000 |
What is the discounted payback period for Model 127B? (in years)
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