Assume a company is going to make an investment of $470,000 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 $195,000 $145,000 195,000 175,000 65,000 60,000 25,000 100,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A years years Option B, Product B B. Which of the two options would you choose based on the payback method? Ch 11 HW assignment take frame

Assume a company is going to make an investment of $470,000 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 $195,000 $145,000 195,000 175,000 65,000 60,000 25,000 100,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A years years Option B, Product B B. Which of the two options would you choose based on the payback method? Ch 11 HW assignment take frame

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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