Question
Assume a $75,000 investment and the following cash flows for two alternatives: Year Investment X Investment Y 1 $15,000 $20,000 2 20,000 25,000 3 25,000
Assume a $75,000 investment and the following cash flows for two alternatives:
| Year | Investment X | Investment Y | ||
| 1 | $15,000 | $20,000 | ||
| 2 | 20,000 | 25,000 | ||
| 3 | 25,000 | 40,000 | ||
| 4 | 20,000 | |||
| 5 | 4,000,000 | |||
Calculate the payback period for investment X and Y. (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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Public Finance In Theory And Practice
Authors: Holley Ulbrich
1st Edition
0324016603, 978-0324016604
