Question
Chapter 11 Exercise A4 Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows
Chapter 11 Exercise A4
Assume a company is going to make an investment of $450,000 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 | $150,000 | |||
| 190,000 | 180,000 | |||
| 60,000 | 60,000 | |||
| 20,000 | 70,000 | |||
Which of the two options would you choose based on this payback method?
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
