Flowers Unlimited is considering purchasing an additional delivery truck which will have a seven-year useful life. The new truck will cost $41,000. Cost savings with this truck are expected to be $11,800 for the first two years, $9,900 for the following two years, and $7,000 for the last three years of the truck's useful life. What is the payback period for this project? What is the discounted payback period for this project with a discount rate of 20 percent?

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Cast of cost New Truck 41000 Saring 11800 and 7000 fo... View the full answer