The Dammon Corp. has the following investment opportunities: $\begin{array}{rrrr}
&\text { Machine A}&\text { Machine B }&\text { Machine C }\

&(\$ 15,000)&(\$ 22,500)&(\$ 37,500)\
&\text { Inflows}&\text { Inflows }&\text { Inflows }\
\text { year 1 } & \$ 6,000 & \$ 12,000 & \$-0- \
\text { year 2 } & 9,000 & 12,000 & 30,000 \
\text { year 3 } & 3,000 & 10,500 & 30,000 \
\text { year 4 } & -0- & 10,500 & 15,000 \
\text { year 5 } & -0- & -0- & 15,000
\end{array}$ Under the payback period and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?

Question

The Dammon Corp. has the following investment opportunities: $\begin{array}{rrrr}
&\text { Machine A}&\text {  Machine B }&\text { Machine C }\

&(\$ 15,000)&(\$ 22,500)&(\$ 37,500)\
&\text { Inflows}&\text { Inflows }&\text { Inflows }\
\text { year 1 } & \$ 6,000 & \$ 12,000 & \$-0- \
\text { year 2 } & 9,000 & 12,000 & 30,000 \
\text { year 3 } & 3,000 & 10,500 & 30,000 \
\text { year 4 } & -0- & 10,500 & 15,000 \
\text { year 5 } & -0- & -0- & 15,000
\end{array}$ Under the payback period and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?

Quizplus · Accepted Answer

The Answer of The Dammon Corp. has the following investment opportunities: $\begin{array}{rrrr}
&\text { Machine A}&\text {  Machine B }&\text { Machine C }\

&(\$ 15,000)&(\$ 22,500)&(\$ 37,500)\
&\text { Inflows}&\text { Inflows }&\text { Inflows }\
\text { year 1 } & \$ 6,000 & \$ 12,000 & \$-0- \
\text { year 2 } & 9,000 & 12,000 & 30,000 \
\text { year 3 } & 3,000 & 10,500 & 30,000 \
\text { year 4 } & -0- & 10,500 & 15,000 \
\text { year 5 } & -0- & -0- & 15,000
\end{array}$ Under the payback period and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?

The Dammon Corp Under the Payback Period and Assuming These Machines Are Mutually