The management of XZ Inc. wants to reduce its labor cost by installing a new machine. Two types of machines are available in the market machine X and machine Y. Machine X would cost $15,000 where as machine Y would cost $18,000. Both the machines can reduce annual labor cost by $5,000.

Required: Which is the best machine to purchase according to payback method?

Select one:

a. machine X

b. machine Y

c. no one

d. machine X and machine y