Question
Assume a $300,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 90,000 $ 100,000 2 100,000 100,000
| Assume a $300,000 investment and the following cash flows for two products: |
| Year | Product X | Product Y | ||||
| 1 | $ | 90,000 | $ | 100,000 | ||
| 2 | 100,000 | 100,000 | ||||
| 3 | 20,000 | 90,000 | ||||
| 4 | 50,000 | 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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Public Finance
Authors: Laurence S. Seidman
1st Edition
0073375748, 978-0073375748
