The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine the best cash payback. Which machine has the best payback period?

Question

The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine the best cash payback. Which machine has the best payback period?​

Quizplus · Accepted Answer

Machine B has the shortest payback period of 2.5 years, while Machine A has a payback period of 3 years and Machine C has a payback period of 4 years. Therefore, Machine B is the best choice for the company as it offers the quickest return on investment.

The Production Department Is Proposing the Purchase of an Automatic