Question
Assume a $50,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1.............. $10,000 $20,000 2.............. 11,000 25,000 3.............. 13,000
Assume a $50,000 investment and the following cash flows for two alternatives.
| Year | Investment A | Investment B |
| 1.............. | $10,000 | $20,000 |
| 2.............. | 11,000 | 25,000 |
| 3.............. | 13,000 | 15,000 |
| 4.............. | 16,000 | |
| 5.............. | 30,000 |
Which alternative would you select under the payback method?
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
