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8. Dammon Corp. has the following investment opportunities: Year Machine A ($15,000) Machine B ($22,500) Machine C ($37,5000) Inflows: Inflows: Inflows: 1 $6,000 $12,000 $0
8. Dammon Corp. has the following investment opportunities:
Year | Machine A ($15,000) | Machine B ($22,500) | Machine C ($37,5000) |
Inflows: | Inflows: | Inflows: | |
1 | $6,000 | $12,000 | $0 |
2 | 9,000 | 12,000 | 30,000 |
3 | 3,000 | 10,500 | 30,000 |
4 | 0 | 10,500 | 15,000 |
5 | 0 | 0 | 15,000 |
Under the payback period and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose? A. Machine A B. Machine B
C. Machine C D. None of the machines will be accepted.
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