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Ambinu Flower Company provides flowers and other nursery products for decorative purposes in medium to large sized restaurants and businesses. The company has been investigating the purchase of a new specially equipped van for deliveries. The van has a value of $133,750 with a six-year life. The expected additional cash inflows are $52,500 per year. What is the payback period for this investment?
Demand For Land
The economic desire or need for land for various purposes such as agriculture, residential, commercial, or industrial developments.
Resource
An economic input used to produce goods and services, such as labor, capital, and natural resources.
Land
In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.
Interest Rate
The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.
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