A restaurant is considering the purchase of a new stove. The cost of the stove is...

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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? 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?

Answer rating: 100% (QA)

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