Regent Corp. is evaluating three competing types of equipment. Costs and cash flow projections for all three

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Regent Corp. is evaluating three competing types of equipment. Costs and cash flow projections for all three are given in the following table. Which would be the best choice based on payback period?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 08, 2012 01:01 AM

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Regent Corp. is evaluating three competing types of equipment. Costs and cash flow projections for all three

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Tvpe 3 S(1,311,450) (1,415,888) S(1,612,856) S786,212 $175,000 $175,000 $175,000 $175,000 $175,000 Year Tvpe 2 $212,566 $269.825 S455,112 S285,552 S121.396 S586,212 S413,277 S331,199 $141.442

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Fundamentals of corporate finance

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