Hello All,

I am trying to calculate payback in years for an estimated replacement and
do not know where to start. I have the following entered in my spreadsheet
but cannot figure out how to make a correct formula for the result. Can
anyone help?

Thanks in advance for your time.
Jayne
REPAIR COSTS VS. REPLACEMENT


Unit

Justification




Previous 12 Mo Cost to Repair $5,406
Expected 12 Mo Cost to Repair $15,000
Total Repair Costs $20,406
Estimated Replacement Cost $40,000
First Year Savings $(19,594)
First Year Less Total Repair Cost $(19,594)

Years to Payback