Under the payback period and assuming these machines are mutually exclusive, which machine(s) would Horne Robinson Inc. choose?

Question

Quizplus · Accepted Answer

Based on the payback period criteria, Horne Robinson Inc. should choose machine A since it has the shortest payback period of 2 years. Machine B has a payback period of 3 years, and machine C has a payback period of 4 years, making them less attractive options. Machine A and B cannot be chosen together since they are mutually exclusive, and only one machine can be chosen. Therefore, the best choice for Horne Robinson Inc. based on the payback period would be machine A.

Under the Payback Period and Assuming These Machines Are Mutually