You are a real estate agent thinking of placing a sign advertising your services at a...

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You are a real estate agent thinking of placing a sign advertising your services at a...

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 5 ,000 and will be posted for one year. You expect that it will generate additional revenue of $ 500 a month. What is the payback period?

The payback period is ?months. (Round to one decimal place.)

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Answer 1

Answer #1

payback period=initial cost/additional revenue per month

=5000/500

which is equal to

=10 months.

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Answer 2

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