sts by $2,000 and generate $8,000 of annual cash sales. Maintenance for the new stove would be $1,000 per year. The old stove would be sold for $1,000. What is the payback period? Group of answer choices
sts by $2,000 and generate $8,000 of annual cash sales. Maintenance for the new stove would be $1,000 per year. The old stove would be sold for $1,000. What is the payback period? Group of answer choices
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3EB: A restaurant is considering the purchase of new tables and chairs for their dining room with an...
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Question
A restaurant is considering the purchase of a new stove. The cost of the stove is $28,000. The stove would decrease annual operating costs by $2,000 and generate $8,000 of annual cash sales. Maintenance for the new stove would be $1,000 per year. The old stove would be sold for $1,000. What is the payback period?
Group of answer choices
3.5 years
2.5 years
28 years
2.8 years
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