Question
Assume a $70,000 investment and the following cash flows for two alternatives: Year Investment X Investment Y 1 $15,000 $30,000 2 20,000 20,000 3 20,000
Assume a $70,000 investment and the following cash flows for two alternatives:
| Year | Investment X | Investment Y | ||||
| 1 | $15,000 | $30,000 | ||||
| 2 | 20,000 | 20,000 | ||||
| 3 | 20,000 | 20,000 | ||||
| 4 | 15,000 | |||||
| 5 | 15,000 | |||||
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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Passive Income The Passive Income Millionaire
Authors: Alexus Arellano
1st Edition
9814950882, 978-9814950886
