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please answer parts A, B,C and D Payback comparisons Nova Products has a 4-year maximum acceptable payback period. The firm is considering the purchase of

please answer parts A, B,C and D image text in transcribed
Payback comparisons Nova Products has a 4-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternatives. The first machine requires an initial investment of $27,000 and generates annual after tax cash inflows of $7,000 for each of the next 8 years. The second machine requires an Inital investment of $9,000 and provides an annual cash inflow after taxes of $3,000 for 22 years a. Determine the payback period for each machino. b. Comment on the acceptability of the machines, assuming that they are independent projects. C. Which machine should the fem accept? Why? d. Do the machines in this problem illustrate any of the weaknesses of using payback? a. The payback period for the first machine is years. (Round to two decimal places.) st

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