A multispecialty group practice might decide to purchase a new piece of laboratory equipment. The purchase price of the equipment is $55,000 and it has a salvage value of $5,000 after 6 years. Anticipated volumes will result in revenue of $6,8000 per year. Anticipated cost of salaries, supplies, and other cash expenses (excluding depreciation) is $4,8000 per year. 

What is the payback period (in years) for the equipment ?

Answer rating: 100% (QA)

To calculate the payback period for the equipment we need to determine how long it takes for the cum... View the full answer