Question
Assume a $200,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 60,000 $ 40,000 2 90,000 70,000
Assume a $200,000 investment and the following cash flows for two products:
| Year | Product X | Product Y | ||||
| 1 | $ | 60,000 | $ | 40,000 | ||
| 2 | 90,000 | 70,000 | ||||
| 3 | 40,000 | 80,000 | ||||
| 4 | 40,000 | 20,000 | ||||
|
| ||||||
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?
multiple choice
-
Product X is selected
-
Product Y is selected
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Trust Accounting In One Hour For Lawyers
Authors: M. Blackford
1st Edition
1634257391, 978-1634257398
