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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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