E11-12 Ranking Capital Investment Projects Using Different Criteria [LO 11-2, 11-3, 11-5, 11-6]

Jill Harrington, a manager at Jennings Company, is considering several potential capital investment projects. Data on these projects follow:

	Project X		Project Y		Project Z
Initial investment		$40,000		$20,000		$50,000
Annual cash inflows		25,000		10,000		25,400
PV of cash inflows		45,000		33,000		70,000

Required: 1. Compute the payback period for each project and rank order them based on this criterion. (Round your answers to 2 decimal places.)

	Payback Period	Rank
Project X
Project Y
Project Z