An investment in a robotics system of $100,000 will save us a net total of $24,389 per year after including depreciation for 5 years

Accounting Aug 22, 2020

An investment in a robotics system of $100,000 will save us a net total of $24,389 per year after including depreciation for 5 years. The hurdle Rate is 9%.

The Payback is ____________________________________________________________

The IRR is _______________________________________________________________

The NPV (9%) is _______________________________________________________________

Expert Solution

Computation of Payback Period:

Payback Period = Initial Investment / Annual Saving

= $100,000 / $24,389

Payback Period = 4.10 years

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