Assume a $90,000 investment and the following cash flows for two alternatives.

Year	Investment A			Investment B
1	$	25,000		$	40,000
2		30,000			40,000
3		25,000			28,000
4		19,000
5		25,000

a.	Calculate the payback for investment A and B. (Round your answers to 2 decimal places.)

	Payback
Investment A	___ years
Investment B	___ years

b.

Which investment would you select under the payback method?

	Investment A
	Investment B

c.

If the inflow in the fifth year for Investment A was $25,000,000 instead of $25,000, would your answer change under the payback method?

	Yes
	No