Mr. J's Bagels invested in a new oven for $14,000. The oven reduced the amount of time for baking which increased production and sales for five years by the following amounts of cash inflows: Using the averaging method, the payback period for the investment in the oven would be:
A) 5.0 years.
B) 2.3 years.
C) 2.0 years.
D) 0.5 years.
Correct Answer:
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