You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 5 comma 000 and will be posted for one year. You expect that it will generate additional revenue of $ 500 a month. What is the payback period?

Question

Business

Kiersten Hartman

2 February, 20:56

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 5 comma 000 and will be posted for one year. You expect that it will generate additional revenue of $ 500 a month. What is the payback period?

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Answers (1)

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Blake Downs · Answer 1

Payback period = 10 months

Explanation:

Giving the following information:

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 5,000 and will be posted for one year. You expect that it will generate an additional revenue of $ 500 a month.

Payback period = 5000/500 = 10 months