Question
. For both machines, determine ( a ) the no-return payback period and ( b ) the nominal 18% per year payback period ( c
. For both machines, determine ( a ) the no-return payback period and ( b ) the nominal 18% per year payback period ( c ) which machine should be selected based on AW analysis?
| Machine | Machine 1 | Machine 2 |
| First cost | 15000 | 8000 |
| NCF, $ per month | -2000 (months1-2) 1000 (months 3-4) 3000 (months 5-8) | 2000 (months 1-4)
|
| Life, month | 8 | 4 |
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Financial Accounting
Authors: David Spiceland
6th Edition
1260786528, 9781260786521
