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, Product A Option B, Product B $185,000 $155,000 190,000 185,000 65,000 55,000 20,000 65,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank years Option B, Product B fill in the blank years
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, Product A Option B, Product B $185,000 $155,000 190,000 185,000 65,000 55,000 20,000 65,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank years Option B, Product B fill in the blank years
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...
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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, Product A | Option B, Product B |
| $185,000 | $155,000 |
| 190,000 | 185,000 |
| 65,000 | 55,000 |
| 20,000 | 65,000 |
A. Calculate the payback period of each product. Round your answers to 2 decimal places.
| Option A, Product A | fill in the blank years |
| Option B, Product B | fill in the blank years |
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