Assume a company is going to make an investment of $470,000 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 $195,000 $145,000 195,000 175,000 65,000 60,000 25,000 100,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A years years Option B, Product B B. Which of the two options would you choose based on the payback method? Ch 11 HW assignment take frame
Assume a company is going to make an investment of $470,000 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 $195,000 $145,000 195,000 175,000 65,000 60,000 25,000 100,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A years years Option B, Product B B. Which of the two options would you choose based on the payback method? Ch 11 HW assignment take frame
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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