A small trucking business intends to update its fleet to keep up with the demand and to ensure the reliability of the trucks for the business. The owner came across a deal which would cost him $22,000 which would also result to a net savings of $3,000 per year. Estimate the payback period based on the discounted payback method assuming i=15%. Show your calculations.

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To calculate the payback period using the discounted payback method we need to consider the time val... View the full answer