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. Medical Experts Inc. is considering contracting an outside company to supply medical equipment for its clients. Medical Experts' managers want to decide of choosing
. Medical Experts Inc. is considering contracting an outside company to supply medical equipment for its clients. Medical Experts' managers want to decide of choosing between two suppliers who will be contracted for a period of 4 years. The following are the details of the two options:
Supplier Initial Investment Annual Cash Flow Period in years
Supplier 1 $150,000 $50,000 4
Supplier 2 $100,000 $25,000 4
What is the Payback period for each of the two options? Which contract is good?
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