Question
12-7 Assume a $40,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $5,000 $25,000 2 12,000 10,000 3
12-7
Assume a $40,000 investment and the following cash flows for two alternatives.
| Year | Investment X | Investment Y | ||||
| 1 | $5,000 | $25,000 | ||||
| 2 | 12,000 | 10,000 | ||||
| 3 | 17,000 | 20,000 | ||||
| 4 | 12,000 | |||||
| 5 | 10,000 | |||||
|
| ||||||
a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. Which alternative would you select under the payback method?
| Investment X | |
| Investment Y |
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
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