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Toya Motors needs a new machine for production of its new models. The financial vice president has appointed you to do the capital budgeting analysis,
Toya Motors needs a new machine for production of its new models. The financial vice president has appointed you to do the capital budgeting analysis, You have identified two different machine that are capable of performance the job. You have completed the cash flow analysis , and the expected net cash flows are as follows:
| Expected Net cash flows | Expected Net Cash Flows |
Year | Machine B | Machine O |
0 | ($5,000) | ($5,000) |
1 | 2,085 | 0 |
2 | 2,085 | 0 |
3 | 2,085 | 0 |
4 | 2,085 | 9,677 |
What is the payback period for machine B
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