NewCo has a 3 year pay-back rule for investments up to $40,000. Compute the pay-back period in years for the following and indicate whether the investment should be done:
Investment Cost Annual Incr. PAT Pay-back in Years? Decision?
Copier $5,000 $1,800
Delivery Car $26,000 $8,900
Machine to reduce Labor $32,000 $9,500