Foodie,a fast food joint,offers home delivery service.It realizes that the purchase of a few motorcycles would make the service more efficient.The estimated cost of purchase is set at $100,000 and it is expected to save $20,000 per year.In this case,the payback period would be:

Question

Quizplus · Accepted Answer

The payback period is calculated by dividing the initial investment by the annual savings. In this case, $100,000 divided by $20,000 per year equals 5 years.

Foodie,a Fast Food Joint,offers Home Delivery Service