Question
Assume a $50,000 investment and the following cash flows for two alternatives: Year Investment X Investment Y 1 $20,000 $10,000 2 10,000 15,000 3 15,000
Assume a $50,000 investment and the following cash flows for two alternatives:
| Year | Investment X | Investment Y | ||
| 1 | $20,000 | $10,000 | ||
| 2 | 10,000 | 15,000 | ||
| 3 | 15,000 | 30,000 | ||
| 4 | 20,000 | |||
| 5 | 5,000,000 | |||
Calculate the payback period for investment X and Y. (Round the final answers to 2 decimal places.)
| Payback period | |||
| Investment X | years | ||
| Investment Y | years | ||
Which of the alternatives would you select under the payback method?
multiple choice
a) Investment X
b) Investment Y
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International Finance Exchange Rates And Financial Flows In The International Financial System
Authors: Heather D. Gibson
1st Edition
0582218128, 978-0582218123
