Question: Information is provided on two machines, which had an original cost of $25,800 for Machine X and $24,200 for Machine Y. a. Which is the

Information is provided on two machines, which had an original cost of

$25,800 for Machine X and $24,200 for Machine Y.Machine X Machine Y Net annual saving $1,440 $3,600 Add: Depreciation 4,500

a. Which is the best investment using the payback period method?

b. Will either of the machines provide the cash investment back in less than four years?

Machine X Machine Y Net annual saving $1,440 $3,600 Add: Depreciation 4,500 4,200 Net annual cash saving $5,940 $7,800

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