Compute the payback for each of the cash flows in Problem 1. If the maximum acceptable payback period is four years, which (if any) of the cash flows would be accepted as a desirable investment?

Data from in Problem 1

Compute the net present value for each of the following cash flows. Assume a cost of money of 10 percent.

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Investment A B C 0 $(1,000) (1,000) (1,000) 1 $100 264 Period 2 $100 264 3 $100 264 4 $100 264 5 $1,100 264 1,611