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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 $ 30,000 2 30,000 35,000
Assume a $90,000 investment and the following cash flows for two alternatives.
| Year | Investment X | Investment Y | ||||
| 1 | $ 25,000 | $ 30,000 | ||||
| 2 | 30,000 | 35,000 | ||||
| 3 | 20,000 | 30,000 | ||||
| 4 | 30,000 | |||||
| 5 | 25,000 | |||||
| | ||||||
| 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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Port Infrastructure Finance
Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander
1st Edition
0415720060, 978-0415720069
