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Business, 19.08.2020 16:01 katrinanuez

Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful life of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow: Annual sales $88,000
Labor costs (72,000)
Depreciation of equipment (6,000)
Operating income $10,000
Income taxes (4,000)
Net income $6,000

The estimated payback of the investment in the pasta equipment is:

a. 3.0 years.
b. 4.0 years.
c. 6.0 years.
d. 8.0 years.

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Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment...
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