The health information management department at Sunnyside Hospital needs a new scanner, which costs $5,000. The supervisor, Leah, has been asked to calculate the payback period because this is an expensive item. Leah has estimated that a savings of $800 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 investment by the annual savings. Therefore, $5,000 / $800 = 6.25 years.

The Health Information Management Department at Sunnyside Hospital Needs a New