Landscaping Inc. would like to purchase a tractor for $425,000. The tractor is expected to...
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Landscaping Inc. would like to purchase a tractor for $425,000. The tractor is expected to have a life of five years, and no salvage value. Annual maintenance costs will total $12,500. Annual labor and material savings are predicted to be $118,750. The company's required rate of return is 8 percent. What is the payback period for this investment (round to the nearest month)? Group of answer choices
3 years.
None of the answer choices is correct.
5 years
4 years 11 months
4 years
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