Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 28

ABB purchased fieldbus communication equipment for a project in South Africa for $3.15 million. The net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated regardless of when it is sold. Determine the number of years the equipment must be used to obtain payback at MARR values of
a) 0% and 8% per year and b) 15% and 16% per year. c) Use a spreadsheet to plot the payback years for all four return values.