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Porter Co. is analyzing two projects for the future. Assume that only one project can be selected. Project X Project Y Cost of machine $
Porter Co. is analyzing two projects for the future. Assume that only one project can be selected.
Project X | Project Y | |||||||
Cost of machine | $ | 69,800 | $ | 52,100 | ||||
Net cash flow: | ||||||||
Year 1 | 24,700 | 3,600 | ||||||
Year 2 | 24,700 | 23,600 | ||||||
Year 3 | 24,700 | 23,600 | ||||||
Year 4 | 0 | 18,000 | ||||||
The payback period in years for Project Y is:
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