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Assume a $40,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 12345 $ 15,000 15,000 5,000 $ 30,000
Assume a $40,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 12345 $ 15,000 15,000 5,000 $ 30,000 5,000 10,000 10,000 20,000 a. Calculate the payback for investment X and Y. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Investment X Investment Y es years years b. Which alternative would you select under the payback method? O Investment X Investment Y
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
