Which of the following equipment purchased by a company has the greatest payback period?
A. A boiler that costs $20,000 with the potential to save $200 a year
B. A computer system that costs $55,000 with the potential to save $5,000 a year
C. A truck that costs $40,000 with the potential to save $2,000 a year
D. A stove that costs $1,000 with the potential to save $200 a year
Answer: A
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