Question
Assume a $92,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $27,000 $35,000 2 20,000 40,000 3 30,000
Assume a $92,000 investment and the following cash flows for two alternatives.
| Year | Investment X | Investment Y | ||||
| 1 | $27,000 | $35,000 | ||||
| 2 | 20,000 | 40,000 | ||||
| 3 | 30,000 | 22,000 | ||||
| 4 | 30,000 | |||||
| 5 | 30,000 | |||||
|
| ||||||
a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
|
b. Which alternative would you select under the payback method?
| Investment X | |
| Investment Y |
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History Of Financial Institutions Essays On The History Of European Finance 1800–1950
Authors: Carmen Hofmann , Martin L. Müller
1st Edition
1138325007, 978-1138325005
