Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $30,000 and will have a 6-year useful life and a
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $30,000 and will have a 6-year useful life and a $4,200 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,200 per year. The cost of these prescriptions to the pharmacy will be about $25,400 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 4.4 years 3.8 years 5 years 3.7 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started