what is the payback period on this investment? years? and month?

does this investment satisfy claras payback rule?

Clara operates a specialized financial services business in Toronto. She's currently considering purchasing an exclusive service agreement from a competitor for $120,000, but would like to ensure that the investment would meet her payback rule of five years. The service agreement would guarantee net returns of $34,000 per year, but would also require her to pay $15,000 for a regulatory audit every other year (starting from the first year)

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer