zero salvage value. Equipment A can be purchased at a cost of $30,000, while Equipment B would cost $55,000. The net cash flows for each type of equipment are given below. 1) Using the conventional payback period approach, determine which type of equipment (A or B) the company should purchase. (b) Consider the time value of money to be 12%. Determine which type of equipment (A or B)the company should procure using the benefit cost ratio. Does your answer to 2b change if you use incremental benefit cost analysis approach?(Extra credit)
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