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EA4. LO 11.2 Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows

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EA4. LO 11.2 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. Which of the two options. would you choose based on the payback method? Option A, Product A Option B, Product B $190,000 190,000 60,000 20,000 $150,000 180,000 60,000 70,000 EA5. LO 11.2 If a garden center is considering the purchase of a new tractor with an initial investment cost of $120,000, and the center expects a return of $30,000 in year one. $20,000 in years two and three, $15,000 in years four and five, and $10,000 in year six and beyond, what is the payback period?

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