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Parkering runs a residential carpet cleaning business. The company is considering purchasing a special vacuum truck that will increase the amount of business the company
Parkering runs a residential carpet cleaning business. The company is considering purchasing a special vacuum truck that will increase the amount of business the company can take an. The cost of the truck will 3275, 000 . If they purchase the truck they will expect annual incremental cash sales to 556,000. They expect to pay cash for maintenance costs annually, and they expect to pay $11,200 cash for supply costs annually. Parker expect the truck to have a use of 20 years with no salvage valuewhich will result in annual depreciation (non-cash expense) of $13.750. What will be the payback period for the vacuum truck ?round to the nearest hundredth)
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