Pro-Am Audio is a contracted company to DJ at private events. Due to a recent increase in
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Pro-Am Audio is a contracted company to DJ at private events. Due to a recent increase in bookings, Pro-Am is considering the purchase of another mobile DJ unit. Pro-Am uses the payback method to evaluate your investments. The mobile DJ unit will cost $12,000, has a useful life of 10 years, and will generate $2,000 in net cash inflows per year. The salvage value of the unit is $1,000.
What is the payback period for the mobile DJ unit?
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date: