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Assume a $74,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $ 15,000 $ 34,000 2 24,000 30,000
Assume a $74,000 investment and the following cash flows for two alternatives. |
Year | Investment X | Investment Y | ||||
1 | $ 15,000 | $ 34,000 | ||||
2 | 24,000 | 30,000 | ||||
3 | 32,000 | 15,000 | ||||
4 | 15,000 | |||||
5 | 30,000 | |||||
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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