Question
You are evaluating Machines A and B to determine which one to buy. Find their payback periods, and then use them as the basis for
You are evaluating Machines A and B to determine which one to buy. Find their payback periods, and then use them as the basis for choosing a machine. Justify your answer
| Inputs | ||
| Yr | A | B |
| 0 | ||
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 | ||
| Outputs | ||
| 1 | ||
| 2 | ||
| 1 + 2 | ||
| 3 | ||
| 1 + 2 + 3 | ||
| 4 | ||
| 1 + 2 + 3 + 4 | ||
| 5 | ||
| 1 + 2 + 3 + 4 + 5 | ||
| Which Machine? | ||
| Justification? |
| Yr | A | B |
| 0 | -1,750,000 | -1,025,000 |
| 1 | 625,000 | 325,000 |
| 2 | 425,000 | 225,000 |
| 3 | 500,000 | 125,000 |
| 4 | 200,000 | 125,000 |
| 5 | 325,000 | 225,000 |
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The Preppers Financial Guide
Authors: Jim Cobb
1st Edition
1612434037, 978-1612434032
