Question
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 20,000 3 25,000
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 | 20,000 | ||||
| 3 | 25,000 | 50,000 | ||||
| 4 | 20,000 | |||||
| 5 | 25,000 | |||||
Calculate the payback period for investment X and investment Y. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
| Payback period | ||
| Investment X | years | |
| Investment Y | years | |
Which of the alternatives would you select under the payback method?
multiple choice
a) Investment X
b) Investment Y
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick, Marci S. Thomas
5th Edition
1119553849, 9781119553847
