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A local church, High - as - a - Kite, decides to purchase a vehicle for $ 2 2 0 , 0 0 0 .

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A local church, High-as-a-Kite, decides to purchase a vehicle for $220,000. The vehicle will have a salvage value of $20,000 after a uscful life of five years. The new vehicle will replace an old vehicle. The old vehicle can be sold for a salvage value of $10,000. The church will rent the vehicle out when it isn't being used at church and as a result it will create contribution margin of $65,625 per year. The only fixed expense the vehicle will have is the annual depreciation of $40,000 per year. What is the payback period for this investment?
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