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

Year	Investment A			Investment B
1	$	30,000		$	30,000
2		25,000			30,000
3		20,000			40,000
4		30,000
5		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