Andrea Kris Is Opening a Small Flower Shop That Will

Multiple Choice

Andrea Kris is opening a small flower shop that will focus primarily on delivery, though it will provide a small showroom for walk-in customers.A local florist is retiring and selling her small flower shop to Andrea for $162,500.The shop has a remaining life of 20 years.Andrea expects to have incremental revenues of $81,250 per year and pay approximately 60% of revenues in operating costs.What is the payback period for Andrea's flower shop?

A) 5 years
B) 2 years
C) 3.33 years
D) 6.66 years