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Buy Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $20,000 and will have a 6 year useful life

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Buy Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $20,000 and will have a 6 year useful life and a $5,900 salvage value. Delivering prescriptions which the pharmacy has never done before) should increase gross revenues by at least $33,900 per year. The cost of these prescriptions to the pharmacy will be about $28,800 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (ignore Income taxes.). (Round your answer to 1 decimal place.) Multiple Choice 2.8 years 5.1 years 3.9 years 56 years

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