Project C will cost $30,000 and will generate $5,000 per year in new revenue. Project D will cost $120,000 and generate $50,000 per year in new revenue. Which is the better project from a payback period standpoint?
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Ответ:
Project D
Explanation:
Payback period calculates the amount of time it takes to recover the amount invested in a project.
Pay back period = Cost of project / revenue from project.
For project c, its Pay back period is $30,000 / $5,000 = 6 years
For project d, the Pay back period is $120,000 / $50,000 = 2.4 years
The project with the shorter Pay back period is better
I hope my answer helps you
Ответ:
Accepting - Agreeing to the job terms and signing with the company interested in you