Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through fo Option A, Option B, Product A Product B $190,000 $155,000 190,000 180,000 65,000 65,000 25,000 70,000 . Calculate the payback period of each product. Round your answers to 2 decimal places. ption A, Product A years ption B, Product B years Which of the two options would you choose based on the payback method?
Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through fo Option A, Option B, Product A Product B $190,000 $155,000 190,000 180,000 65,000 65,000 25,000 70,000 . Calculate the payback period of each product. Round your answers to 2 decimal places. ption A, Product A years ption B, Product B years Which of the two options would you choose based on the payback method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Assume a company is going to make an investment of $460,000 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
$155,000
190,000
180,000
65,000
65,000
25,000
70,000
A. Calculate the payback period of each product. Round your answers to 2 decimal places.
Option A, Product A
years
Option B, Product B
years
B. Which of the two options would you choose based on the payback method?
Previous
Ne
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