Question
Assume a $60,000 investment and the following cash flows for two alternatives: Year Investment X Investment Y 1 $10,000 $20,000 2 30,000 15,000 3 10,000
Assume a $60,000 investment and the following cash flows for two alternatives:
| Year | Investment X | Investment Y | ||||
| 1 | $10,000 | $20,000 | ||||
| 2 | 30,000 | 15,000 | ||||
| 3 | 10,000 | 30,000 | ||||
| 4 | 20,000 | |||||
| 5 | 10,000 | |||||
Calculate the payback period for investment X and investment Y. (Do not round intermediate calculations. 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
Investment X
Investment Y
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
