a. The payback period for the first machine is __ years.(Round to two decimal places.)

The payback period for the second machine is ___ years.(Round to two decimal places.)

b. Is the first machine acceptable? Yes/No

Is the second machine acceptable?Yes/No

c. Based on their payback periods, which machine should the firm accept?

A.Machine 1

B.Neither

C.Machine 2

d. Does this problem illustrate any of the payback method's weaknesses?

A.Machine 2 has returns that last 28 years while Machine 1 has only 10 years of returns. Payback cannot consider this difference; it ignores all cash inflows beyond the payback period.

B.Machine 2 has returns that last only 10 years while Machine 1 has 28 years of returns. Payback cannot consider this difference; it ignores all cash inflows beyond the payback period.

C.Machine 2 has returns that last 28 years while Machine 1 has only 10 years of returns. Payback considers only the first 10 years for each machine.

D.Machine 2 has returns that last 28 years while Machine 1 has only 10 years of returns. Payback considers this difference; it includes all cash inflows beyond the payback period.

inflow of $6,000 for 28 years. a. Determine the payback period for each machine. b. Comment on the acceptability of the machines, assuming that they are independent projects. c. Which machine should the firm buy? Why? d. Does this problem illustrate any of the payback method's weaknesses