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Business, 14.05.2021 01:20 cxttiemsp021

Fast Food, Inc., has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected (Ignore income taxes.): Sales $ 22,000 Expenses: Flour, etc., required in making donuts $ 10,000 Salaries 6,000 Depreciation 1,600 17,600 Net operating income $ 4,400 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period on the new machine is closest to:

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Fast Food, Inc., has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 ye...
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