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PAY BACK PERIOD(PBP). An aluminium moulding factory is planning to buy an injection machine . The cost of investment is 250.000 TL and the useful life of the equipment is 6 years , the MARR value is 40%. The cash inflows are as follows : 130 ,110,140,225,170 and 220.000 TL
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PAY BACK PERIOD(PBP) An aluminiummouldingfactory is planningto buy an injectionmachine. Thecost of investment is 250.000 TL andtheuseful life of theequipment is 6 years, the MARR value is 40%. Thecashinflowsare as follows: 130 ,110,140,225,170 and 220.000 TL Determinethe PBP forthisinvestment? Solution:
(-50.1-0) / 0- X = (0-8.4) / X-12 (Interpolation) • 58.5 X = 601.2 X= 10.2 months • PBP= 10.2 months + 3 years