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The Damon 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 year 1

The Damon 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

year 1 $12,000

year 1 $-0-

year 2 9,000

year 2 12,000

year 2 30,000

year 3 3,000

year 3 10,500

year 3 30,000

year 4 -0-

year 4 10,500

year 4 15,000

year 5 -0-

year 5 -0-

year 5 15,000

Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Damon Corp. choose and how many years does it take to recoup the original investment?

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