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Discounted Payback: Ie 305 - Engineering Economic Analysis Cameron Mackenzie
Discounted Payback: Ie 305 - Engineering Economic Analysis Cameron Mackenzie
DISCOUNTED PAYBACK
Autonumerics Company would like to buy a new spindle at a cost of $105,000 to replace one that has a
salvage value of $20,000. The projected annual after-tax savings via improved efficiency are:
Period 1 $15,000
Period 2 $25,000
Period 3 $35,000
Period 4 $45,000
Period 5 $45,000
Period 6 $35,000
1. Payback method
2. Net present value or net present worth
3. Net future worth
4. Capitalized equivalent method