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Lady bird [3.3K]
4 years ago
11

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

ck period of the automation?
Business
1 answer:
Andrew [12]4 years ago
4 0

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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