A company is trying to decide which of two new product lines to introduce in the coming year.The predicted revenue and cost data for each product line follows: The company has a 30% tax rate,it uses the straight-line depreciation method,and it predicts that cash flows will be spread evenly throughout each year.Calculate each product's payback period.If the company requires a payback period of three years or less,which,if either,product should be chosen?

Question

A company is trying to decide which of two new product lines to introduce in the coming year.The predicted revenue and cost data for each product line follows:  The company has a 30% tax rate,it uses the straight-line depreciation method,and it predicts that cash flows will be spread evenly throughout each year.Calculate each product's payback period.If the company requires a payback period of three years or less,which,if either,product should be chosen?

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The Answer of A company is trying to decide which of two new product lines to introduce in the coming year.The predicted revenue and cost data for each product line follows:  The company has a 30% tax rate,it uses the straight-line depreciation method,and it predicts that cash flows will be spread evenly throughout each year.Calculate each product's payback period.If the company requires a payback period of three years or less,which,if either,product should be chosen?

A Company Is Trying to Decide Which of Two New