Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through fo Option A, Option B, Product A Product B $190,000 $155,000 190,000 180,000 65,000 65,000 25,000 70,000 . Calculate the payback period of each product. Round your answers to 2 decimal places. ption A, Product A years ption B, Product B years Which of the two options would you choose based on the payback method?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through four.
Option A,
Option B,
Product A
Product B
$190,000
$155,000
190,000
180,000
65,000
65,000
25,000
70,000
A. Calculate the payback period of each product. Round your answers to 2 decimal places.
Option A, Product A
years
Option B, Product B
years
B. Which of the two options would you choose based on the payback method?
Previous
Ne
Transcribed Image Text:mageNOWv2 | Online teachin + keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false ncel Your.. F Startup Opportuniti. V How brands are co.. Assignment Practic.. A COVID-19 Student. C20-128PRO1-2016. O Final Exam Review -. G Professional Certific. Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Option B, Product A Product B $190,000 $155,000 190,000 180,000 65,000 65,000 25,000 70,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A years Option B, Product B years B. Which of the two options would you choose based on the payback method? Previous Ne
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