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Instead of Model A and B, Jane is now considering Model X and Y as she learned that her budget envelope has increased to $15,000
Instead of Model A and B, Jane is now considering Model X and Y as she learned that her budget envelope has increased to $15,000
| Model (C) | Model (X) | Model (Y) |
Initial Cost | $7,500 | $10,000 | $12,500 |
Life (years) | 4 | 4 | 4 |
Annual Savings | $2,500 | $2,750 | $7,000 |
- Based on the Payback analysis, which of the above options are most attractive
- Model C or X
- Model Y
- Model X
- Cant decide since they have different product life
- All three options are equally attractive
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