Question: Problem: Use (a) no-return payback, (b) discounted payback at 15%, and (c) PW analysis at 15% to select a system. Comment on the results.
Problem: Use (a) no-return payback, (b) discounted payback at 15%, and (c) PW analysis at 15% to select a system. Comment on the results. Payback Analysis System 1 12,000 3,000 System 2 8,000 1,000 (year 1-5) 3,000 (year 6-14) 14 First cost, $ NCF, $ per year Maximum life, years 7
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a No Return payback period is the period Number of years it takes the cash flows to cover the initial cash outlay Cash flows System 1 System 2 Year Ca... View full answer
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