sts by $2,000 and generate $8,000 of annual cash sales. Maintenance for the new stove would be $1,000 per year.   The old stove would be sold for $1,000.  What is the payback period? Group of answer choices

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PA: The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $60,000,...
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A restaurant is considering the purchase of a new stove. The cost of the stove is $28,000.  The stove would decrease annual operating costs by $2,000 and generate $8,000 of annual cash sales. Maintenance for the new stove would be $1,000 per year.   The old stove would be sold for $1,000.  What is the payback period?
Group of answer choices
3.5 years
2.5 years
28 years
2.8 years
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