A company can manufacture a product using hand tools. Tools will cost $1,000, and the manufacturing cost per unit will be $1.50. As an alternative, an automated system will cost $15,000 with a manufacturing cost per unit of $0.50. If the anticipated annual volume is 5,000 units and interest is neglected, the payback period (yrs) to buy the automated system rather than the hand tool method is most nearly:
A. 2.8
B. 3.6
C. 15.0
D. never
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