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16 November, 06:09

A specialized automatic machine costs and is expected to save per year while in operation. using a 99 % interest rate, what is the discounted payback period?

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  1. 16 November, 06:20
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    The formula for discounted payback period is DPP = - ln (1 - Ci/S) / ln (1+i), wherein C is the initial Cost, i is the interest rate, and S is the saved cash per year. Given the value of i which is 0.99, substitute the remaining value of the specialized automatic machine cost (C) and saved cash (S) per year to get the discounted payback period.
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