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explain! The Sunset Boulevard Straw Company specializes in decorative straw baskets. Currently, the company is analyzing purchase alternatives for an automated machine. Data relevant to
explain!
The Sunset Boulevard Straw Company specializes in decorative straw baskets. Currently, the company is analyzing purchase alternatives for an automated machine. Data relevant to the decision are as follows: Machine A Machine B Cost $90,000 $82,000 Useful Life 5 years 5 years Residual life $2,000 $3,000 Estimated annual Net Cash Flows $35,000 $30,000 The Present Value Multipliers at 12% are given: Dollar received at the end of 5 years Dollar received at the end of each of the 5 years 0.567 3.605 [6] Compute the payback period for each of the alternatives. Round answers to two decimal placesStep by Step Solution
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