19 Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $28,000 and will have a 6-year useful life and a $4,700 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,700 per year. The cost of these prescriptions to the pharmacy will be about $26,400 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) 01:10:14

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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19
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $28,000 and will have a 6-year useful
life and a $4,700 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least
$32,700 per year. The cost of these prescriptions to the pharmacy will be about $26,400 per year. The pharmacy depreciates all assets using
the straight-line method. The payback period for the auto is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
01:10:14
Transcribed Image Text:19 Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $28,000 and will have a 6-year useful life and a $4,700 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,700 per year. The cost of these prescriptions to the pharmacy will be about $26,400 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) 01:10:14
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