Nova Products has a 44​-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternatives.
The first machine requires an initial investment of ​$26 comma 00026,000 and generates annual​ after-tax cash inflows of ​$6 comma 0006,000 for each of the next 1010 years.
The second machine requires an initial investment of ​$29 comma 00029,000 and provides an annual cash inflow after taxes of ​$8 comma 0008,000 for 2828 years.

a. Determine the payback period for each machine.

b. Comment on the acceptability of the​ machines, assuming that they are independent projects.

c. Which machine should the firm​ accept? Why?

d. Do the machines in this problem illustrate any of the weaknesses of using​ payback?