Question: Please use formuals A convenience store owner is contemplating putting a large neon sign over his store. It would cost $50,000, but is expected to

Please use formuals
Please use formuals A convenience store owner is contemplating putting a large

A convenience store owner is contemplating putting a large neon sign over his store. It would cost $50,000, but is expected to bring an additional $24,000 of profit to the store every year for five years. What is his payback period in years and months? Would this project be worthwhile if evaluated using a payback period of two years or less and if the cost of capital is 10%

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