Question
Assume a company is going to make an investment of $440,000 in a machine and the following are the cash flows that two different products
Assume a company is going to make an investment of $440,000 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 |
| $190,000 | $145,000 |
| 185,000 | 185,000 |
| 55,000 | 60,000 |
| 20,000 | 60,000 |
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??? . |
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Principles Of Accounting Volume 2 Managerial Accounting
Authors: OpenStax
1st Edition
0357364805, 9780357364802
