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Upgrade cost Year 1 Year 2 Year 3 Year 4 Year 5 Able $ 7,800 $ 2,600 $ 3,000 $ - $ 3,200 Acre $
Upgrade cost | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Able | $ 7,800 | $ 2,600 | $ 3,000 | $ - | $ 3,200 |
Acre | $ 11,200 | $ 3,600 | $ 4,200 | $ - | $ 5,600 |
Adam | $ 1,200 | $ - | $ 1,400 | $ 1,400 | $ - |
Aft | $ 2,400 | $ - | $ 1,600 | $ - | $ 2,200 |
Agape | $ 1,200 | $ - | $ 1,800 | $ - | $ 2,200 |
Year 1 | |
Labor Cost | $ 41,022 |
Able | $ 10,915.00 |
Acre | $ 16,863.00 |
Adam | $ 4,746.00 |
Aft | $ 4,548.00 |
Agape | $ 3,950.00 |
Assuming that each upgrade will decrease labor costs by 10%, calculate the discounted payback period for the upgrade for each product (Able, Acre, Adam, Aft, Agape). Assume a 14% discount rate.
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