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Assume a company is going to make an investment of $455,000 in a machine and the following are the cash flows that two different products
Assume a company is going to make an investment of $455,000 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 $145,000 195,000 185,000 60,000 60,000 20,000 75,000 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? Option A, Product A Feedback Check My Work The initial investment will be offset by the cash flows for each year. Continue until the initial investment is depleted to determine the total payback period
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