2.) A production manager wishes to determine which equipment he should recommend to management for purchasing. Equipment Stomp costs Php 75,000 which is expected to generate an annual cash flow of Php30,000 relevant to its purchase. However, equipment Kick costs Php90,000 and will generate a relevant annual cash flow of Php 27,000. Using the payback period criterion, which equipment should the manager recommend to management?

2.) A production manager wishes to determine which equipment he should recommend to management for purchasing. Equipment Stomp costs Php 75,000 which is expected to generate an annual cash flow of Php30,000 relevant to its purchase. However, equipment Kick costs Php90,000 and will generate a relevant annual cash flow of Php 27,000. Using the payback period criterion, which equipment should the manager recommend to management?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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