Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TravelCenters of America LLC is the largest full-service travel center company in the United States, serving both professional drivers and motorists. Since 2011, the company's
TravelCenters of America LLC is the largest full-service travel center company in the United States, serving both professional drivers and motorists. Since 2011, the company's growth strategy has been to acquire additional travel center and convenience center locations. In addition to agreements entered into in 2015, the company acquired 3 travel centers and 170 convenience centers for a total purchase price of $320.3 million.
- Using the payback method, suppose TravelCenters of America expects to receive annual net cash inflow of $32.03 million per year. How many years would it take to payback the initial investment?
- What are some disadvantages to using the payback method? Why would a company, such as TravelCenters of America, not use the payback method as their sole method for making capital investment decisions?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started