Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pepe's Paletas is consideringthe purchase ofa small ice cream cart for$4,300. Pepe expects salesto be $3,500 a year for five years. After the five years,

Pepe's Paletas is consideringthe purchase ofa small ice cream cart for$4,300. Pepe expects salesto be $3,500 a year for five years. After the five years, the cart'scooling systemis expected to give out and the cart will be worthless. What is the payback period of the ice cream cart?

A) 1.23 years

B) 6.14 years

C) 4.07 years

D) 0.25 years

E) 0.81 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Strategy

Authors: Mike W. Peng

5th Edition

0357512367, 978-0357512364

Students also viewed these Finance questions