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Which should choose based on payback period method

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Reference no: EM132609279

The initial cost for project x is $28,400 and $22,200 for project y. The projects operating cash flows are below.

Year 1 projx 9,000 projy 7,000

Year 2 projx 8,000 projy 7,500

Year 3 projx 7,500 projy 8,000

Year 4 projx 7,000 projy 9,000

Question 1: Which should you choose based on payback period method?

A.) Machine x

B.) machine y

C.) both x and y

D.) none of above

Reference no: EM132609279

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