Question
Assume a $230,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 70,000 $ 60,000 2 50,000 90,000
| Assume a $230,000 investment and the following cash flows for two products: |
| Year | Product X | Product Y | ||||
| 1 | $ | 70,000 | $ | 60,000 | ||
| 2 | 50,000 | 90,000 | ||||
| 3 | 60,000 | 70,000 | ||||
| 4 | 70,000 | 50,000 | ||||
| a. | Calculate the payback for products X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Payback | ||
| Product X | years | |
| Product Y | years | |
| b. | Which alternative would you select under the payback method? | ||||
|
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The Routledge Handbook Of Financial Literacy
Authors: Gianni Nicolini, Brenda J. Cude
1st Edition
0367457776, 978-0367457778
