Which of the following equipment purchased by a company provides the greatest savings per year?
A) A car that costs $40,000 with a payback period of 4 years
B) A van that costs $180,000 with a payback period of 2 years
C) An industrial filter that costs $30,000 with a payback period of 5 years
D) A packaging unit that costs $250,000 with a payback period of 2 years

Question

Quizplus · Accepted Answer

The van provides the greatest savings per year as it has the shortest payback period of 2 years and a higher initial cost of $180,000. The other equipment have longer payback periods and provide lower savings per year.

Which of the Following Equipment Purchased by a Company Provides