Question
Assume a $55,000 investment and the following cash flows for two alternatives: Year Investment A Investment B 1 $15,000 $20,000 2 25,000 15,000 3 10,000
Assume a $55,000 investment and the following cash flows for two alternatives:
| Year | Investment A | Investment B | ||
| 1 | $15,000 | $20,000 | ||
| 2 | 25,000 | 15,000 | ||
| 3 | 10,000 | 30,000 | ||
| 4 | 20,000 | |||
| 5 | 3,700,000 | |||
Calculate the payback for investment A and B. (Round the final answers to 2 decimal places.)
| Payback period | |||
| Investment A | years | ||
| Investment B | years | ||
Which of the alternatives would you select under the payback method?
multiple choice
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Investment A
-
Investment B
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Understanding Futures Markets
Authors: Robert Kolb, James Overdahl
6th Edition
1405134038, 9781405134033
