Answer:
8.3333 years or 8 years and 4 months.
Explanation:
Initial cost = $50,000
Amount recovered on the investment per year = $10,000 - $4,000 = $6,000
The simple payback period is given by dividing the initial cost by the amount recovered per year:
[tex]n=\frac{\$50,000}{\$6,000}\\n=8.3333\ years[/tex]
The simple payback period is 8.3333 years or 8 years and 4 months.
