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It will cost $6,000 to acquire an ice cream cart Cart sales are expected to be $3.000 a year for four years. After four years, the cart is expected to be worthless as the expected life of the refrigeration unit is only four years. What is the payback period? If the cutoff period is 3 years, should you buy this ice cream cart? Multiple Choice The payback period is 2 years: yes, buy the truck The payback period is 4 years, yes, buy the truck

It will cost $6,000 to acquire an ice cream cart Cart sales are expected to be $3.000 a year for four years. After four years, the cart is expected to be worthless as the expected life of the refrigeration unit is only four years. What is the payback period? If the cutoff period is 3 years, should you buy this ice cream cart? Multiple Choice The payback period is 2 years: yes, buy the truck The payback period is 4 years, yes, buy the truck

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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It will cost $6,000 to acquire an ice cream cart. Cart sales are expected to be $3.000 a year for four years. After four years, the cart is expected to be worthless as the expected life of the refrigeration unit is only four years. What is the payback period? If the cutoff period is 3 years, should you buy this ice cream cart? Multiple Choice The payback period is 2 years: yes, buy the truck The payback period is 4 years; yes, buy the truck. The payback period is 4 years; No, do not buy the truck. The payback period is 2 years; No, do not buy the truck.
Transcribed Image Text:It will cost $6,000 to acquire an ice cream cart. Cart sales are expected to be $3.000 a year for four years. After four years, the cart is expected to be worthless as the expected life of the refrigeration unit is only four years. What is the payback period? If the cutoff period is 3 years, should you buy this ice cream cart? Multiple Choice The payback period is 2 years: yes, buy the truck The payback period is 4 years; yes, buy the truck. The payback period is 4 years; No, do not buy the truck. The payback period is 2 years; No, do not buy the truck.
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