You pay your servers $3,300 per month. A design consultant says she can redesign your space to make the s 20% more efficient. She will design it and build the new space for just $25,000. How long will it take you to recover her cost if she is correct in her productivity prediction?

Question

Business

Ari Watson

18 February, 09:30

You pay your servers $3,300 per month. A design consultant says she can redesign your space to make the s 20% more efficient. She will design it and build the new space for just $25,000. How long will it take you to recover her cost if she is correct in her productivity prediction?

+2

Answers (1)

Know the Answer?

Jack Li · Answer 1

38 months.

Explanation:

For this problem, we know that the servers will be 20% more efficient, which means they can save 20% per month. If the rate is 3,300 your savings would be 660 per month.

At that rate, it would take approximately 38 months to recover the 25,000 expense (25,000/660).