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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

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, Product A Option B, Product B
$195,000 $145,000
195,000 180,000
60,000 60,000
20,000 85,000

A. Calculate the payback period of each product. Round your answers to 2 decimal places.

Option A, Product A ___ years
Option B, Product B ___2 years

B. Which of the two options would you choose based on the payback method?

(Option A, Product A; Option B, Product B)

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