Simple payback period for the investments

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Amanda's restaurant is failing so she applies for Gordon Ramsey's show Kitchen Nightmares. He comes to help and the show invests $750,000 during filming to save her business. In order to maintain their sucess, Amanda must continue to support with $51,000 in marketing funds for the following 3 years. However, the restaurant sees great success following the show and profits $100,000 increasing by 4% every year. What is the simple payback period for the investments in Amanda's restaurant? What is the discounted payback period if she has to pay the shows investors 9% on their investment?

Reference no: EM133109668

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