Bryant Company has obtained the following data about a possible planned investment:
Cost $270,000
Terminal salvage value in 8 years $10,000
Additional annual cash revenues for 8 years $250,000
Additional annual cash expenses for 8 years $200,000
Estimated useful life in years 8
The company uses straight-line depreciation method.
Required:
a. Compute the payback period.

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?