Due to recent business conditions, you will be working from…
Due to recent business conditions, you will be working from home for the foreseeable future. To replace your daily coffee-shop habit, you decided to purchase a $420 Steamy Perkster – an automated espresso maker and milk frother. Based on your daily need for a double-shot latte, you estimate that your monthly expenses for coffee beans, milk, and descaler will be about $37.50 per month. This same drink costs $4 at your local coffee shop, including tip. At an average of 30 drinks each month and an effective interest rate of 2% per month, what is the discounted payback period for this purchase?