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Food Stop, a Fast Food Restaurant, Offers Home Delivery Service

Question 37

Multiple Choice

Food Stop, a fast food restaurant, offers home delivery service. The manager of Food Stop decides to upgrade its existing fleet of delivery vehicles to improve the speed of delivery. The estimated cost of the upgrade is set at $100 ,000. If the finance department of Food Stop agrees to a payback period of five years, the upgraded delivery vehicles need to save the restaurant ________ a year for five years.


A) $200,000
B) $100,000
C) $20,000
D) $40,000

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