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It will cost $6,000 to acquire an ice cream cart. Cart sales are expected to be $3,600 a year for three years. After the three
It will cost $6,000 to acquire an ice cream cart. Cart sales are expected to be $3,600 a year for three years. After the three years, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. If the payback limit is 2 years, what is the payback period and should the project be accepted or rejected?
A. 1.48 years, Reject
B. 1.67 years, Accept
C. 1.67 years, Reject
D. 2.15 years, Accept
E. 2.00 years, Reject
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