Payback method-assuming machines are mutually exclusive

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Reference no: EM131923673

The Trenton Corp. has the following investment opportunities:

Machine A Machine B Machine C

($10,000) ($22,500) ($35,500)

Year 1 $6,000 Year 1 $12,000 Year 1 $-0-

Year 2 3,000 Year 2 7,500 Year 2 30,000

Year 3 3,000 Year 3 1,500 Year 3 5,000

Year 4 -0- Year 4 1,500 Year 4 20,000

Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Trenton Corp. choose?

a. Machine A and B

b. Machine B

c. Machine A

d. Machine C

Reference no: EM131923673

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