Question
The Dammon Corp. has the following investment opportunities: Machine A ($15,000 ) Machine B ($22,500 ) Machine C ($37,500 ) Inflows Inflows Inflows Year 1
The Dammon Corp. has the following investment opportunities:
| Machine A ($15,000) | Machine B ($22,500) | Machine C ($37,500) | |
| Inflows | Inflows | Inflows | |
| Year 1 | $6,000 | $12,000 | $0 |
| Year 2 | 9,000 | 12,000 | 30,000 |
| Year 3 | 3,000 | 10,500 | 30,000 |
| Year 4 | 0 | 10,500 | 15,000 |
| Year 5 | 0 | 0 | 15,000 |
Under the payback period and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?
Multiple Choice
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None of the machines will be accepted.
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Machine C
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Machine B
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Machine A
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Gapenskis Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
