genow.com/ilrn/takeAssignment/takeAssignmentMam.co?invoker=&takeAssignmentSessloreВookAssume 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.Option A,Option B,Product A Product B$190,000$145,000195,000185,00060,00055,00015,00075,000A. Calculate the payback period of each product. Round your answers to 2 decimal places.Option A, Product A3.33yearsOption B, Product ByearsB. Which of the two options would you choose based on the payback method?

Payback period is the time a project takes to recover its initial cost. Payback period is used in…

O eBook 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 thr Option A, Option B, Product A Product B $190,000 $145,000 195,000 185,000 60,000 55,000 15,000 75,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A 3.33 years Option B, Product B years B. Which of the two options would you choose based on the payback method?

O eBook 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 thr Option A, Option B, Product A Product B $190,000 $145,000 195,000 185,000 60,000 55,000 15,000 75,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A 3.33 years Option B, Product B years B. 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

Section: Chapter Questions

Problem 1Q

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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. Option A, Product A Option B, Product B $185,000 $155,000 190,000 185,000 65,000 55,000 20,000 65,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank years Option B, Product B fill in the blank years