Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. What is the payback period for Option A, Product A? Round to the nearest tenth, one decimal place. Cash Flow data Option A, Product A Option B, Product B $150,000 180.000 $190,000 190,000 60,000 60.000 20,000 70,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. What is the payback period for Option A, Product A?
Round to the nearest tenth, one decimal place.
Cash Flow data
Option A, Product A
Option B, Product B
$190,000
$150.000
190,000
180,000
60,000
60,000
20,000
70,000
Transcribed Image Text:Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. What is the payback period for Option A, Product A? Round to the nearest tenth, one decimal place. Cash Flow data Option A, Product A Option B, Product B $190,000 $150.000 190,000 180,000 60,000 60,000 20,000 70,000
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