Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $24,000 and will have a 6-year useful life and a $6,000 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $28,000 per year. The cost of these prescriptions to the pharmacy will be about $22,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.):
A. 2 years
B. 1.2 years
C. 1.8 years
D. 4 years
Answer: D
Business
You might also like to view...
Licenses are properly classified as intangible assets
Indicate whether the statement is true or false
Business
Answer the following statements true (T) or false (F)
All of the relationships between self-leadership strategies and the “mind and body” are reciprocal relationships.
Business
An insight is ______.
a. a new idea for a product or service b. the combined force of all information gathered from observation and interviews c. an interpretation of an observation that provides new understanding d. a complete knowledge of the observed persons’ actions in a particular situation
Business
Explain the difference between a gross requirements plan and a net requirements plan
What will be an ideal response?
Business