Question
Assume a $230,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 60,000 $ 80,000 2 80,000 80,000
Assume a $230,000 investment and the following cash flows for two products:
| Year | Product X | Product Y | ||||
| 1 | $ | 60,000 | $ | 80,000 | ||
| 2 | 80,000 | 80,000 | ||||
| 3 | 50,000 | 60,000 | ||||
| 4 | 60,000 | 40,000 | ||||
|
| ||||||
a. Calculate the payback for products X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product X ______ Years
Product Y ______ Years
b.Which alternative would you select under the payback method?
| Product Y is selected | |
| Product X is selected |
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
979-8388730831
