Question
Assume a $45,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $ 15,000 $ 22,000 2 15,000 10,000
Assume a $45,000 investment and the following cash flows for two alternatives.
| Year | Investment A | Investment B | ||||
| 1 | $ | 15,000 | $ | 22,000 | ||
| 2 | 15,000 | 10,000 | ||||
| 3 | 10,000 | 26,000 | ||||
| 5 | 10,000 | |||||
| 5 | 20,000 | |||||
| | ||||||
| a. | Calculate the payback for investment A and B. (Round your answers to 2 decimal places.) |
| Payback | ||
| Investment A | years | |
| Investment B | years | |
| | ||
| b. | Which investment would you select under the payback method? | ||||
|
| c. | If the inflow in the fifth year for Investment A was $20,000,000 instead of $20,000, would your answer change under the payback method? | ||||
|
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Campaign Finance Reform
Authors: Melissa M. Smith, Glenda C. Williams, Larry Powell, Gary A. Copeland
1st Edition
0739145657, 978-0739145654
