It Will Cost $28,900 to Acquire a Small Ice Cream

question 43

Multiple Choice

It will cost $28,900 to acquire a small ice cream cart.Cart sales are expected to be $10,500 a year for 3 years.After the 3 years,the cart is expected to be worthless.What is the payback period?

• A)2)68 years
• B)2)07 years
• C)2)75 years
• D)2)46 years
• E)Never

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Definitions:

Production Technology

Refers to the methods, equipment, and processes used to produce goods and services.

Capital Intensive

An industry or business that requires large amounts of money and resources (such as machinery or equipment) to produce goods or services.

Alternative Technologies

Refers to varying methods, tools, or systems that can be used as substitutes for each other in achieving a similar outcome, often considered in the context of environmental sustainability or efficiency improvements.

Hourly Wage Rate

The compensation employees receive for every hour they work.