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X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years.
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $65,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B $-6,000 $-7,000 1 -4,000 2 -8,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 -2,000 -4,000 If X Company buys Machine B instead of Machine A, what is the payback period (in years)? Tries 0/3 Submit
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