Healthcare Statistics
posted by Anonymous .
In deciding whether to purchase or lease a new dictation system, the HIM supervisor calculates the payback period. The hospital's required payback period is three years. If the equipment costs $ 28,000 and generates $3,500 per year in savings, what would be the payback period for this equipment? Should the department purchase this equipment?

Healthcare Statistics 
Ms. Sue
You've already stated that the required payback period is 3 years.
3,500x > 28,000
Solve for x to find how long the company would need to keep this equipment.
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I have answered all of the following except for the payback period, I do not understand how to do it. Can you please explain how to do the payback period?