Question

Program X has an annual cost of $35000, and, in return, is expected to save Company C $40,000 during the first year. Assuming the cost and savings are equally distributed across each month, after how many months will the company recover its investment in Program X?
1.5, 5.5, 10.5, 12, or 14 months?

Answer 1

For the answer to the question above,
The program has an annual cost of $35,000 and will generate $40,000 savings the first year. 

$35,000 / $40,000 = .875
.875 x 12 months = 10.5 months
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