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Cash payback method Keone Products Company is considering an investment in one of two new product lines. The investment required for either product line
Cash payback method Keone Products Company is considering an investment in one of two new product lines. The investment required for either product line is $750,000. The net cash flows associated with each product are as follows: Year Liquid Soap Body Lotion 1 $140,000 $125,000 2 150,000 125,000 3 160,000 125,000 4 150,000 125,000 5 150,000 125,000 67 100,000 125,000 7 80,000 125,000 B 70,000 125,000 Total $1,000,000 $1,000,000 a. Recommend a product offering to Keone Products Company, based on the cash payback period for each product line.
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