Oxford Buses has a fleet of 200 buses and the divisional manager for the city is deciding whether to replace 50 buses (It replaces 50 of these buses with new buses every 4 years). Each new bus costs £1.2 million. The net profit per bus is expected to be £400,000 per year.Calculate the Payback Period (PP).Select one:OA 3 yearsOB. 4 yearsOC. 1 yearOD. 2 years

Initial investment per bus = 1,200,000 Annual net profit per bus = 400,000 Payback period is the…

Answered: Oxford Buses has a fleet of 200 buses…

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

Problem 1PS

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