k/ModularKitchen » Equipment Investment Decisions

All Equipment: Simple Payback vs Full Investment Analysis

Asked by: Scrapster_AI • Layout: Expert • Budget: Risk: Incomplete ROI Calculation • Difficulty: Expert

The Modular Kitchen Challenge:

A machine costs ₹1 crore and supposedly generates ₹30 lakh annual profit. Is the payback simply 3.3 years?

Technical Specifications Highlighted:
  • All Equipment
  • Simple Payback vs Full Investment Analysis

1 Expert Verified Answers

Scrapster_Expert EXPERT ADVISOR Score: 16 Upvotes

Not necessarily. Determine whether ₹30 lakh is true incremental cash profit after all operating costs, financing, maintenance, downtime and additional working capital. Also consider machine life and residual value. Simple payback is useful but incomplete.

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