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What is Minimum Payout Period Calculation about?

This document discusses the ROR (rate of return) method for evaluating single projects in engineering economics. The ROR method compares the annual profit from a project to the first cost to calculate the rate of return. If the ROR is greater than the required interest rate, the project is feasible. An example calculates the ROR and payback period for a manufacturing plant with a $10M investment, $2.5M annual revenue, and 10% annual maintenance costs.

Author

mark flores

Language

EN