Question
Candy Cups is considering whether to purchase a machine that manufactures cups with names printed on them, or, a bow tying machine. The cup machine
Candy Cups is considering whether to purchase a machine that manufactures cups with names printed on them, or, a bow tying machine. The cup machine will cost $6,000 and, over its 5 year life, will provide net cash inflows of $1,832 per year. The bow tier costs $3,000 and will save $792 net cash outflow per year for 5 years.
If Candy only has the funds for one project, which would they choose according to Payback Period?
a.cup machine; it pays back in less time.
b.bow tier; it pays back in a more time.
c.cup machine; it pays back in more time.
d.bow tier; it pays back in less time.
not my work need help with homework
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