A company is planning to purchase a new machine to expand its production. The machine is costing OMR 10000. The following cash inflows are expected to come. Calculate pay back period for Machine A and Machine B Years Machine A Machine B 1 2400 5200 3600 4800 3 5800 7800 4 6000 8600 Select one: а. Machine A: 2 years 8 months; Machine B= 3 years b. None of the options С. Machine A: 2 years 8 months Machine B=2 years O d. Machine A: 3 years; Machine B= 2 years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company is planning to purchase a
new machine to expand its
production. The machine is costing
OMR 10000. The following cash
inflows are expected to come.
Calculate pay back period for Machine
A and Machine B
Years
Machine A
Machine B
1
2400
5200
2
3600
4800
5800
7800
4
6000
8600
Select one:
а.
Machine A: 2 years 8 months;
Machine B= 3 years
b. None of the options
Ос.
Machine A: 2 years 8 months
Machine B=2 years
d.
Machine A: 3 years; Machine B= 2
years
е.
3.
Transcribed Image Text:A company is planning to purchase a new machine to expand its production. The machine is costing OMR 10000. The following cash inflows are expected to come. Calculate pay back period for Machine A and Machine B Years Machine A Machine B 1 2400 5200 2 3600 4800 5800 7800 4 6000 8600 Select one: а. Machine A: 2 years 8 months; Machine B= 3 years b. None of the options Ос. Machine A: 2 years 8 months Machine B=2 years d. Machine A: 3 years; Machine B= 2 years е. 3.
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