A new computer costs $5,000 and is expected to save $500 per month in employee time because of its speed. It has an expected life of 3 years. What is the payback period for the computer?

Name: A new computer costs $5,000 and is expected to save $500 per month in employee time because of its speed. It has an expected life of 3 years. What is the payback period for the computer?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The payback period is calculated by dividing the initial investment by the monthly savings. So, $5,000 / $500 = 10 months.

A New Computer Costs $5,000 and Is Expected to Save