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Assume a $55,000 investment and the following cash flows for two alternatives: 1 | Page year Investment X Investment Y 1 $ 9,000 $ 22,000
Assume a $55,000 investment and the following cash flows for two alternatives:
1 | Page
| year | Investment X | Investment Y | ||
| 1 | $ 9,000 |
| $ 22,000 |
|
| 2 | 11,000 |
| 25,000 |
|
| 3 | 15,000 |
| 16,000 |
|
| 4 | 21,000 |
| - |
|
| 5 | 25,000 |
| - |
|
Which of the alternatives would you select under the payback method?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
