Payback Period

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A machine costs $10,000 and saves$ 2,500 per year. Ignoring interest, its payback period is:

A.2 years

B.4 years

C.5 years

D.10 years

A project costs $10,000 and returns$ 2,500 per year. What is its simple payback period?

A.4 years

B.2.5 years

C.5 years

D.10 years

A machine costs $20,000 and saves$ 4,000 per year. Its simple payback period is:

A.4 years

B.5 years

C.8 years

D.20 years

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