Required information A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $43,000. Income is expected to be $90,000 per year. What is the payback period at i= 0% per year? At i= 12% per year? (Note: Round your answers to the nearest integer.) The payback period at i= 0% is determined to be years. The payback period at i= 12% is determined to be years.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Required information
A process for producing the mosquito repellant Deet has an
initial investment of $200,000 with annual costs of $43,000.
Income is expected to be $90,000 per year.
What is the payback period at i= 0% per year? At i= 12% per year? (Note: Round
your answers to the nearest integer.)
The payback period at i= 0% is determined to be
уears.
The payback period at i= 12% is determined to be
years.
Transcribed Image Text:Required information A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $43,000. Income is expected to be $90,000 per year. What is the payback period at i= 0% per year? At i= 12% per year? (Note: Round your answers to the nearest integer.) The payback period at i= 0% is determined to be уears. The payback period at i= 12% is determined to be years.
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