Management at the Daily Grind wants to install an espresso bar in its restaurant that costs $140,000 and has a 10-year-life. It will generate annual net cash inflows of $35,000. Management requires a payback period of 5 year or less on all investments. What is the payback period for the espresso bar? (use payback period and discounted payback period technique)

Please answer by using formula not excel

Answer rating: 100% (QA)

To calculate the payback period we need to divide the initial investment by the annual net cash in... View the full answer