The management of Health Supplement Inc. wants to reduce its labor cost by installing a new machine. Two types of machines are available in the market – machine X and machine Y. Machine X would cost $18,000 where as machine Y would cost $15,000. Both the machines can reduce annual labor cost by $3,000.

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• Which is the best machine to purchase according to payback method?

Answer rating: 100% (QA)

To determine the best machine to purchase according to the payback method we need to calculate the p... View the full answer