Chapter 5 Class Activities   Which of the following machine to be selected based on Payback period Average rate of return.    Sr. Machine A Machine B      No. RO. RO.     Year Cash outflow/ (50,000.00) Cash outflow/ (50,000.00)     1            6,000.00           15,000.00     2            7,200.00           17,500.00     3            7,350.00           18,000.00     4            8,200.00             5,000.00     5            9,820.00                        -       6          10,200.00                        -       7          12,500.00                        -                  61,270.00           55,500.00

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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Chapter 5

Class Activities

 

  1. Which of the following machine to be selected based on
    1. Payback period
    2. Average rate of return.
 

 Sr.

Machine A

Machine B

 
 

 No.

RO.

RO.

 
 

Year

Cash outflow/

(50,000.00)

Cash outflow/

(50,000.00)

 
 

1

           6,000.00

          15,000.00

 
 

2

           7,200.00

          17,500.00

 
 

3

           7,350.00

          18,000.00

 
 

4

           8,200.00

            5,000.00

 
 

5

           9,820.00

                       -  

 
 

6

         10,200.00

                       -  

 
 

7

         12,500.00

                       -  

 
 

 

         61,270.00

          55,500.00

 
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