Essay
The Cal-Fruit Company specializes in decorative fruit baskets.Currently,the company is analyzing purchase alternatives for a fruit-polishing machine.Data relevant to the decision are as follows:
a.Compute the payback period for each of the alternatives.Round answers to two decimal places.
b.Using the net present value method,prepare an analysis to determine which machine the company should purchase.(The company uses a 12 percent minimum desired rate of return. )
Correct Answer:
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a.Payback period:
Machine A: $90,000 
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Correct Answer:
Verified
Machine A: $90,000
$...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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