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Assume a $80,000 investment and the following cash flows for two alternatives. Year Hamin Investment A $ 20,000 30,000 22,500 15,000 20,000 Investment B $
Assume a $80,000 investment and the following cash flows for two alternatives. Year Hamin Investment A $ 20,000 30,000 22,500 15,000 20,000 Investment B $ 45,000 25,000 25,000 a. Calculate the payback for investment A and B. (Round your answers to 2 decimal places.) years Investment A Investment B years b. Which investment would you select under the payback method? O Investment A Investment B c. If the inflow in the fifth year for Investment A was $20,000,000 instead of $20,000, would your answer change under the payback method? Yes
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