You are to planning to buy new equipment, after consultation with your financial officer and purchasing department. Two offers were received from vendors. Instrument A costs $25,000 and provides $5000 per year for 6 years.
Instrument B costs $8000 and generates revenue of $4000 per year for 2 years.
Which instrument has a better investment and payback periods?
Discuss the strengths and weaknesses of this decision.