Question
Assume a $250,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 90,000 $ 50,000 2 90,000 80,000
Assume a $250,000 investment and the following cash flows for two products:
| Year | Product X | Product Y |
|---|---|---|
| 1 | $ 90,000 | $ 50,000 |
| 2 | 90,000 | 80,000 |
| 3 | 60,000 | 60,000 |
| 4 | 20,000 | 70,000 |
Calculate the payback for products X and Y.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Which alternative would you select under the payback method?
multiple choice
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How To Understand Business Finance
Authors: Bob Cinnamon, Brian Helweg-Larsen
2nd Edition
0749460202, 978-0749460204
