2. Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A Option B Product A Product B $190,000 $150,000 190,000 180,000 60,000 60,000 20,000 70,000 Payback Period for Option A = ? years. Payback Period for Option B = ? years. Round your Payback Period (PB) answer to two decimal places. (i.e. 12.34). Which of the two options would you choose based on the payback method. Option ? . Please note: Your answer is either "A" or "B" - capital letter, no quotes.
2. Assume a company is going to make an investment of $450,000 in a machine and the following are the
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Option A Option B Product A Product B $190,000 $150,000 190,000 180,000 60,000 60,000 20,000 70,000 |
Payback Period for Option A = ? years.
Payback Period for Option B = ? years.
Round your Payback Period (PB) answer to two decimal places. (i.e. 12.34).
Which of the two options would you choose based on the payback method. Option ? .
Please note: Your answer is either "A" or "B" - capital letter, no quotes.
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