What is the payback period for investment

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You are considering buying a clothing maker, Twisted Pair, which makes cargo pants made entirely from hemp. You can buy the business for $1,600,000. You estimate the expenses will be $400,000 per year and revenue $700,000 per year. You plan to sell the business at the end of 6 years for an estimated $2,000,000. Assume expenses occur at the beginning of each year and revenue at the end of each year. What is the payback period for this investment?

Reference no: EM133005042

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