Program X has an annual cost of $35,000 and, in return, is expected to save the Company C $40,000 during the first year. Assuming the cost and savings are equally distributed across each month, after how many months will the company recover its investment in Program X?
Answers
Step-by-step explanation:
The molecules involving ionic bond (s) are:
A. H₂O
B. Nacl
c. Na₂0
D. Mgo
a) B.C and D
c) A and B
b) A and c
d) All of these
Company C will recover its investment in Program X in 10.5 months
Given:
i) Annual cost of a program X = $35,000/year
ii) Expected savings to the Company C = $40,000/year
iii) The cost and savings are equally distributed across each month
To find:
No. of months the company recover its investment in Program X
Solution:
Since the annual savings to the Company C from program X = $40,000, dividing the savings in each month (12 months in an year), we get
Savings per month = 40000/12
Suppose in x months, the company recovers its investment in program X.
Then, at that moment
the total savings in x months = cost of the program X
=> (40000/12)*x = 35000
=> x = (35000*12)/40000
=> x = 10.5 months
Thus, the company recover its investment in Program X in 10.5 months
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