It Will Cost $6,000 to Acquire an Ice Cream Cart

question 63

Multiple Choice

It will cost $6,000 to acquire an ice cream cart.Cart sales are expected to be $3,600 a year for three years.After the three years,the cart is expected to be worthless as the expected life of the refrigeration unit is only three years.What is the payback period?

• A)1.48 years
• B)1.67 years
• C)1.82 years
• D)1.95 years
• E)2.00 years