Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 53

Julian Browne, owner of Clear Interior Environments, purchased an air scrubber, HEPA vacuum, and other equipment for mold removal for $15,000 eight months ago. Net cash flows were $2000 for each of the first 2 months, followed by $1000 per month for months 3 and 4. For the last 4 months, a contract generated a net $6000 per month. Julian sold the equipment yesterday for $3000 to a friend. Determine
a) the no-return payback period and b) the nominal 18%-per-year payback period.