Question: Instead of Model A and B, Jane is now considering Model X and Y as she learned that her budget envelope has increased to $15,000

Instead of Model A and B, Jane is now considering Model X and Y as she learned that her budget envelope has increased to $15,000

Model (C)

Model (X)

Model (Y)

Initial Cost

$7,500

$10,000

$12,500

Life (years)

4

4

4

Annual Savings

$2,500

$2,750

$7,000

  1. Based on the Payback analysis, which of the above options are most attractive
    1. Model C or X
    2. Model Y
    3. Model X
    4. Cant decide since they have different product life
    5. All three options are equally attractive

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