the table below shows the cash flow associated with making a part in-house or by using contract labor.
In-House COntract Labor
First cost $ 43000 2000
annual cost 5000 2000
annual income 14000 ??
salvage value 7,000 none
life years 9 7
What is the pay back period for the in house option if the interest rate is 9% per year? how much annual income (the in the table) must the contract labor generate that will make each option equally attractive if the interest rate is B $4365 9% per year?