Question
Assume a $110,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 45,000 $ 40,000 2 25,000 50,000
Assume a $110,000 investment and the following cash flows for two products:
| Year | Product X | Product Y | ||||
| 1 | $ | 45,000 | $ | 40,000 | ||
| 2 | 25,000 | 50,000 | ||||
| 3 | 35,000 | 17,000 | ||||
| 4 | 20,000 | 30,000 | ||||
|
| ||||||
a. Calculate the payback for products 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?
Please include financial calculator entries
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Take Charge Of Your Money Now Essential Strategies For Winning In Any Financial Climate
Authors: A.J. Monte, Rick Swope
1st Edition
0345517334, 978-0345517333
