Question $11$

An alternative for producing a pesticide will have a first cost of $$400,000$ and annual costs of $$40,000.$ Income is expected to be $$120,000$ per year. What is the payback period at $6\%$ per year interest?

Between $5$ & $6$ years

Between $6$&$7$ years

between $7$&$8$ years

Between $8$&$9$ years