Question
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 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
| Labor Cost | $ 41,022 | $ 47,672 | $ 44,650 | $ 49,826 | $ 54,029 | $ 50,240 |
| Able | $ 10,915.00 | $ 10,641.00 | $ 7,548.00 | $ 7,552.00 | $ 6,429.00 | $ 6,291.00 |
| Acre | $ 16,863.00 | $ 11,555.00 | $ 9,864.00 | $ 8,919.00 | $ 8,655.00 | $ 6,591.00 |
| Adam | $ 4,746.00 | $ 7,308.00 | $ 3,871.00 | $ 6,222.00 | $ 5,947.00 | $ 6,591.00 |
| Aft | $ 4,548.00 | $ 5,982.00 | $ 6,494.00 | $ 6,052.00 | $ 5,990.00 | $ 4,781.00 |
| Agape | $ 3,950.00 | $ 7,967.00 | $ 9,315.00 | $ 10,503.00 | $ 10,867.00 | $ 5,379.00 |
Assuming that each upgrade will decrease labor costs by 10%, what is the payback period for the upgrade for each product (Able, Acre, Adam, Aft, Agape)?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
