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Computing the payback period

It will cost $6,000 to acquire an ice cream cart. Cart sales are expected to be $3,600 a year for three years. After the three years, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. What is the payback period?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the payback period

Reference No:- TGS0671187

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What would an antitrust

Q : Civil rights movement

Q : Estimated cost of common equity using capm

Q : Find internal rate of return for data pertain to investment

Q : Computing the payback period

Q : What major transaction gave rise to this amount

Q : Prepare a contibution format income statement

Q : Annual rate versus semi-annual rate

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the payback period

Reference No:- TGS0671187

Recent Questions Asked Finance Basics

Q : What would an antitrust

Q : Civil rights movement

Q : Estimated cost of common equity using capm

Q : Find internal rate of return for data pertain to investment

Q : Computing the payback period

Q : What major transaction gave rise to this amount

Q : Prepare a contibution format income statement

Q : Annual rate versus semi-annual rate

Q : How much would th annual cash inflows from project

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