# Healthcare Statistics

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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 -

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?

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