The health information management department at Sunnyside Hospital needs a new copier, which costs $8,000. The supervisor, Leah, has been asked to calculate the payback period because this is an expensive item. Leah has estimated that a savings of $975 a year is feasible if the new unit is purchased. Calculate the payback period.

Question

Quizplus · Accepted Answer

The payback period is calculated by dividing the cost of the copier by the annual savings. In this case, the payback period is $8,000 / $975 = 8.20 years.

The Health Information Management Department at Sunnyside Hospital Needs a New