Problem: X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $51,000, Machine B cost $72,000. Estimated annual cash flows with the two machines are as follows:
|
Year
|
Machine A
|
Machine B
|
|
1
|
$6,000
|
$7,000
|
|
2
|
-8,000
|
-4,000
|
|
3
|
-8,000
|
-3,000
|
|
4
|
-8,000
|
-3,000
|
|
5
|
-6,000
|
-3,000
|
|
6
|
-5,000
|
-2,000
|
|
7
|
-4,000
|
-2,000
|
If X Company buys Machine B instead of Machine A, what is the payback period (in years)?
The tutors associated with our Payback Period Assignment Help service are highly competent and skilled and can cover all the topics of any educational level of any complexity level.
Tags: Payback Period Assignment Help, Payback Period Homework Help, Payback Period Coursework, Payback Period Solved Assignments, Annual Cash Flows Assignment Help, Annual Cash Flows Homework Help