A Food Cart Costs $4,500 and Is Expected to Return

Multiple Choice

A food cart costs $4,500 and is expected to return $1,750 a year for three years and then be worthless.What is the payback period for this cart?

A) 2.83 years
B) 3.14 years
C) 2.78 years
D) 2.57 years
E) 1.57 years