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Assume a $90,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 INmin $ 30, 000 25, 000 $30,

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Assume a $90,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 INmin $ 30, 000 25, 000 $30, 000 30, 000 20, 000 40. 000 30, 000 25, 000 a. Calculate the payback for investment A and B. (Round your answers to 2 decimal places.) 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

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