What is the payback period for the investment

Reference no: EM13781050

A NEW INVENTORY MANAGEMENT SYSTEM FOR ABC COMPANY COULD BE DEVELOPED AT THE COST OF $260.000. THE ESTIMATED NET OPERATING COSTS AND ESTIMATED NET BENEFITS OVER SIX SIX YEARS OPERATION WOULD BE year estimated net operating cost estimated benefits 0 $260,000 $0 1 7,000 42,000 2 9,000 75,000 3 11,000 82,000 4 14,000 115,000 5 15,000 120,000 6 25,000 140,000 a. what is the payback period for the investment? would it be a good or a bad investment? why? b. what is the ROI for the investment c. Assuming a 15% discount rate, what is the investment NPV?

Reference no: EM13781050

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