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The Dammon Corp. has the following investment opportunities: Machine A ($10,000 cost). Inflows year 1 $6,000 year 2 3,000 year 3 3,000 -B- Machine B
The Dammon Corp. has the following investment opportunities: Machine A ($10,000 cost). Inflows year 1 $6,000 year 2 3,000 year 3 3,000 -B- Machine B ($22,500 cost) Inflows year 1 $12,000 year 2 7,500 1,500 1,500 Machine C ($35,500 cost) Inflows year 1 $-0- year 2 30,000 year 3 5,000 year 4 20,000 year 3 year 4 year 4 Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose? Multiple Choice Machine A and B Machine B Machine A Machine C
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