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Assume a $52,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $ 12,000 $ 20,000 2 18,000 25,000
| Assume a $52,000 investment and the following cash flows for two alternatives. |
| Year | Investment X | Investment Y | ||||
| 1 | $ 12,000 | $ 20,000 | ||||
| 2 | 18,000 | 25,000 | ||||
| 3 | 15,000 | 17,000 | ||||
| 4 | 10,000 | |||||
| 5 | 15,000 | |||||
| a. | Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Payback | ||
| Investment X | years | |
| Investment Y | years | |
| b. | Which alternative would you select under the payback method? | ||||
|
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Personal Finance QuickStart Guide
Authors: Morgen Rochard
1st Edition
1945051019, 978-1945051012
