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By automating its shop floor, your company expects to save $81,000 annually. If the automation costs $225,000, what is the payback period of the automation?

Respuesta :

abiolataiwo2015

Answer:

2.78

Explanation:

Calculation for the payback period of the automation

Using this formula

Payback period = Automation cost/ Amount to saved annually

Let plug in the formula

Payback period =$225,000/$81,000

Payback period =2.78

Therefore the payback period of the automation will be 2.78

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