Question 1: I only need help with question A) what is the payback period for the first machine? and what is the payback period for the second machine?

Payback comparisons Nova Products has a 4year maximum acceptable payback period. The rm is considering the purchase of a new machine and must choose between two attematives. The rst machine requires an initial investment of $1B, and generates annual altertax cash inows of $4,l]l] for each of the next '11 years. The second machine requires an initial investment of $21. and provides an annual cash inow after taxes of 551%] for 313 years. a. Determine the payback period for each machine. b. Comment on the acceptability of the machines. assuming that they are independent projects. 1:. Which machine should the rm accept? Why? d. Do the machines in this problem illustrate any of the weaknesses of using payback? Long-term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $7,900 today and promises to pay $2,300, $2,600, $2,600, $2,000 and $1,800 over the next 5 years. Or, Bill can invest $7,900 in project B that promises to pay $1,600, $1,600, $1,600, $3,500 and $4,100 over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) a. How long will it take for Bill to recoup his initial investment in project A? b. How long will it take for Bill to recoup his initial investment in project B? c. Using the payback period, which project should Bill choose? d. Do you see any problems with his choice