You purchased a building five years ago for $100,000. Its annual maintenance expense has been $5,000 per year. At the end of five years, you sold the building for $80,000. During the period of ownership, you rented out the building for $10,000 per year at the beginning of each year. Evaluate this investment when MARR is 8% per year.  The payback period is,   a. 4 years   b. 5 years   c. 2 years   d. 3 years

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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You purchased a building five years ago for $100,000. Its annual maintenance expense has been $5,000 per year. At the end of five years, you sold the building for $80,000. During the period of ownership, you rented out the building for $10,000 per year at the beginning of each year. Evaluate this investment when MARR is 8% per year. 

The payback period is,

  a.

4 years

  b.

5 years

  c.

2 years

  d.

3 years

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