The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine the best cash payback. Which machine has the best payback period?

A) Machine A
B) Machine C
C) Machine B
D) They all three have the same cash payback period.

Question

The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine the best cash payback. Which machine has the best payback period?

A) Machine A
B) Machine C
C) Machine B
D) They all three have the same cash payback period.

anupama patnaik · Accepted Answer

Final Answer : C, Explanation :  Machine B has the shortest payback period of 2.5 years, while Machine A has a payback period of 3 years and Machine C has a payback period of 4 years. Therefore, Machine B is the best choice for the company as it offers the quickest return on investment.

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