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What is the payback period for the new burrito stand

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Question - Food company, Manuel Mexican, is considering investing $35 000 in a new pop-up burrito stand beside a popular Melbourne park. Manuel Mexican estimates the net cash inflow will increase by $14 000 each year for the next 5 years. What is the payback period for the new burrito stand?

a. 3.5 years

b. 2 years

c. 2.5 years

d. 3 years

Reference no: EM132997794

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