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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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  1. 2 February, 21:33
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    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
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