O eBook 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 thr Option A, Option B, Product A Product B $190,000 $145,000 195,000 185,000 60,000 55,000 15,000 75,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A 3.33 years Option B, Product B years B. Which of the two options would you choose based on the payback method?
O eBook 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 thr Option A, Option B, Product A Product B $190,000 $145,000 195,000 185,000 60,000 55,000 15,000 75,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A 3.33 years Option B, Product B years B. Which of the two options would you choose based on the payback method?
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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