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
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Assume a company is going to make an investment of $450,000 in a machine and the following are the
| 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 |
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- Assume a company is going to make an investment in a machine of $825,000 and the following are the cash flows that two different products would bring. Which of the two options would you choose based on the payback method?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 $190,000 $150,000 185,000 175,000 60,000 60,000 25,000 75,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank 1 years Option B, Product B fill in the blank 2 years B. Which of the two options would you choose based on the payback method?Assume a $200,000 investment and the following cash flows for two products: Year Product X Product Y 1 2 3 4 $60,000 $40,000 90,000 70,000 40,000 80,000 40,000 20,000 a. Calculate the payback for products X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product X Product Y years years b. Which alternative would you select under the payback method? O Product X is selected O Product Y is selected
- 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. What is the payback period for Option A, Product A? Round to the nearest tenth, one decimal place. Cash Flow data Option A, Product A Option B, Product B $190,000 $150.000 190,000 180,000 60,000 60,000 20,000 70,000Assume a $55,000 investment and the following cash flows for two alternatives. Year Investment A Investment B $ 15,000 $35,000 1 2 25,000 10,000 20,000 15,000 25,000 3 4 20,000 a. Calculate the payback for investment A and B. (Round your answers to 2 decimal places.) Investment A years Investment B years b. Which investment would you select under the payback method? O Investment A O Investment B c. If the inflow in the fifth year for Investment A was $20,000,000 instead of $20,000, would your answer change under the payback method? Yes O NoAssume 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. What is the payback period for Option B, Product B? Round to the nearest tenth, one decimal place. Cash Flow data Option A, Product A Option B, Product B $190.000 $150,000 190,000 180,000 60.000 60,000 20,000 70,000
- Assume a $40,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $10,00 10,000 2 10,000 20,000 3 15,000 25,000 4 10,000 - 5 20,000 - a. Calculate the payback for investments A and B. (Round your answers to 2 decimal places.) b. Which investment would you select under the payback method? multiple choice 1 Investment A Investment B c. If the inflow in the fifth year for Investment A was $20,000,000 instead of $20,000, would your answer change under the payback method? multiple choice 2 Yes No3. 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. What is the payback period for Option A, Product A? Round to the nearest tenth, one decimal place. Cash Flow data Option A, Product A Option B, Product B $190,000 $150,000 190,000 180,000 60,000 60,000 20,000 70,000 4. 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. What is the payback period for Option B, Product B? Round to the nearest tenth, one decimal place. Cash Flow data Option A, Product A Option B, Product B $190,000 $150,000 190,000 180,000 60,000 60,000 20,000 70,000Assume a $270,000 investment and the following cash flows for two products: Year Product X Product Y 1 2 3 4 $ 70,000 100,000 95,000 50,000 $90,000 80,000 80,000 40,000 a. Calculate the payback for products X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product X Product Y years years S b. Which alternative would you select under the payback method? O Product X is selected O Product Y is selected
- Can you show me how this is done? Grayson Corp. is considering the purchase of a piece of equipment that costs $34,269. Projected net annual cash flows over the project’s life are: Year Net Annual Cash Flow 1 $ 6,702 2 19,077 3 15,682 4 19,233 The cash payback period is. Round your answer by two decimals Selected Answer: 0.56 Correct Answer: 2.54 ± 0.015. 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. Which of the two options would you choose based on the payback method? -option A, Product A or -option B, product B Cash Flow data Option A, Product A Option B, Product B $190,000 $150,000 190,000 180,000 60,000 60,000 20,000 70,000 6. If a garden center is considering the purchase of a new tractor with an initial investment cost of $120,000, and the center expects a return of $30,000 in year one, $20,000 in years two and three, $15,000 in years four and five, and $10,000 in year six and beyond, what is the payback period? Round to the nearest whole year.Dogwood Company is considering a capital investment in machinery: (Click the icon to view the data.) 8. Calculate the payback. 9. Calculate the ARR. Round the percentage to two decimal places. 10. Based on your answers to the above questions, should Dogwood invest in the machinery? 8. Calculate the payback. Amount invested Expected annual net cash inflow Payback 1,500,000 24 500,000 3 years 9. Calculate the ARR. Round the percentage to two decimal places. Average annual operating income Average amount invested ARR Data Table Initial investment $ 1,500,000 Residual value 350,000 Expected annual net cash inflows 500,000 Expected useful life 4 years Required rate of return 15%