A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs
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A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year.
(a) What is the payback period at i = 0% per year? A i = 12% per year? (Round your answers to the nearest integer.)
(b) What is the annual breakeven production quantity for both payback periods (determined above) if net profit, that is, income minus cost, is $10 per gallon?
Payback PeriodPayback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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a i 0 n p 20000090000 50000 5 years i 12 200000 90000 ...View the full answer
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