Question = Calculate the payback period. Alberto's Pizzeria is considering purchasing six (6)...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Question = Calculate the payback period.
Alberto's Pizzeria is considering purchasing six (6) instore terminals that would allow customers to order their pizza digitally rather than queuing to order at the counter. The Manager is excited by this idea as it means lower wait times for customers and a reduction in wages paid. By installing this computer, they would be able to make one of their casual front of house staff redundant. The details of the computer are as follows: Cost of acquiring the digital ordering $120,000 systems Annual insurance costs for the $1,500 terminals Annual software subscription for the $1,000 terminals Fixed price maintenance contract for $2,500 the terminals Annual front of house wages for one $17,000 employee Expected useful life of the terminal 9 years Expected residual value at the end of $20,000 the terminal's life Discount rate 10% Term of loan to finance terminals 6 years
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
