If there was an estimated cash savings

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"Carol Rollins, owner of Carollins, is considering buying an energy efficient oven for her restaurant. However, she is concerned that the cost savings adequately offset the purchase price; she would prefer the project to have no more than a 2.5 year payback period. She is basing her decision on the following information:
Project Cost: $23,500Cost Savings

1805_68-B-C-F-C-B (1417).png

Required:

1. Determine if Ms. Rollins should invest in this over.

2. If there was an estimated cash savings of $4,500 for each year, would this be purchased, based on the payback criterion?

Reference no: EM13949270

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