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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2
X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2 costs $54,000. The useful life of both is seven years, with the following estimated operating cash flows: Year 1 2 3 Truck 1 $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Truck 2 $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 4 5 6 7 If X Company chooses Truck 2 instead of Truck 1, what is the payback period in years)? OA: 2|OB: 3 OC: 4 OD: 5| OE: 6 OF: 7 Submit Answer Tries 0/99
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