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Consider the following information: Initial investment: Cost of equipment (zero salvage value) 1,100,000 Annual revenues and costs: Sales revenues 810,000 Variable cash expenses 420,000
Consider the following information: Initial investment: Cost of equipment (zero salvage value) 1,100,000 Annual revenues and costs: Sales revenues 810,000 Variable cash expenses 420,000 Depreciation expense 74,000 Fixed cash operating costs 225,000 What is the payback period? 2.82 years 0.74 years 12.09 years 6.67 years
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