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Your company is buying a delivery vehicle now (Year O) for $20,000. You expect the vehicle to increase your profits by $1,000 in Year 1
Your company is buying a delivery vehicle now (Year O) for $20,000. You expect the vehicle to increase your profits by $1,000 in Year 1 and that number to grow by $800 per year each year after that (so $1,800 in Year 2, $2,600 in Year 3, and so on). a) What is the simple payback period? . b) Given an interest rate of 10%, what is the discounted payback period? c) If the company looks for a discounted payback period of 6 years or less, would they consider this a good investment? a) What is the simple payback period? (Enter an integer - no decimal places) b) What is the discounted payback period? (Enter an integer - no decimal places) c) If the company looks for a discounted payback period of 6 years or less, would they consider this a good investment? O A. Yes OB. No
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