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Problem 2. XYZ is considering two proposed machinery investments. Proposals A and B each cost $600,000, have 6-year lives, and have expected total cash flows

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Problem 2. XYZ is considering two proposed machinery investments. Proposals A and B each cost $600,000, have 6-year lives, and have expected total cash flows of $750,000. Proposal A is expected to provide equal annual net cash flows of $125,000 while the net cash flows for Proposal B are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $250,000 $200,000 $150,000 $ 75,000 $ 50,000 $ 25,000 Determine the cash payback period for Proposal A and B. Show all calculations. Rounds answers to ! decimal place. If resources are limited, which machinery should the company invest in? Why

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