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Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for...

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Accounting

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 $5,300 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $33,300 per year. The cost of these prescriptions to the pharmacy will be about $27,600 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.)image

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 $5,300 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $33,300 per year. The cost of these prescriptions to the pharmacy will be about $27,600 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.) 1 0 0 3.3 years 0 5.1 years 0 4.8 years

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