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Wiseman Industries has details of three machines that could fulfil the company's future production plans. Only one of these would be purchased. The company's cost

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Wiseman Industries has details of three machines that could fulfil the company's future production plans. Only one of these would be purchased. The company's cost of capital is 10%. The initial cost and cash inflows for these machines are as follows. Machine A Machine B Machine C Initial cost -$ 50,000 -$ 50,000 -$ 50,000 Net cash inflows: Year 1 $ 10,000 $ 10,000 $ 10,000 Year 2 $ 20,000 $ 10,000 S 20,000 Year 3 $ 20,000 $ 10,000 $ 18,000 Year 4 20,000 $ 20,000 $ 3,500 Year 5 10,000 30,000 3,500 Year 6 30,000 30,000 Year 7 Required: (a) Calculate the Cash Payback period for Machine A (b) Calculate the Cash Payback period for Machine B (c) Calculate the Cash Payback period for Machine C (d) Based on the above calculations, which Machine should be selected? (e) Discuss one disadvantage of the Cash Payback Period method

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