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becky28 becky28
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9 months ago

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 $6,000 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $28,000 per year. The cost of these prescriptions to the pharmacy will be about $22,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.):



▸ 2 years

▸ 1.8 years

▸ 4 years

▸ 1.2 years
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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doquangnhatdoquangnhat
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9 months ago
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becky28 Author
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9 months ago
this is exactly what I needed
loki1345
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
sweetalia
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2 hours ago
You make an excellent tutor!
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