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Assume a $90,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $25,000 $50,000 30,000 30,000 25,000 20,000 20,000
Assume a $90,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $25,000 $50,000 30,000 30,000 25,000 20,000 20,000 25,000 12345 a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment X Investment Y years years b. Which alternative would you select under the payback method? O Investment X O Investment Y
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