Question
Assume a $75,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $15,000 $25,000 2 25,000 35,000 3 30,000
Assume a $75,000 investment and the following cash flows for two alternatives.
| Year | Investment X | Investment Y | ||||
| 1 |
| $15,000 |
|
| $25,000 |
|
| 2 |
| 25,000 |
|
| 35,000 |
|
| 3 |
| 30,000 |
|
| 20,000 |
|
| 4 |
| 20,000 |
|
|
| |
| 5 |
| 10,000 |
|
|
| |
|
| ||||||
a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Investment X: ____ years
Investment Y: ____ years
b. Which alternative would you select under the payback method?
multiple choice
Investment X
Investment Y
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Collectible Investments For The High Net Worth Investor
Authors: Stephen Satchell
1st Edition
0123745225,0080923054
