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Problem 19-05

Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place.

Year		A		B		C
1	$	3,000	$	4,100	$	0
2		3,000		3,400		500
3		3,000		2,600		1,200
4		3,000		2,100		2,300
5		3,000		1,400		4,800

Payback for A: years

Payback for B: years

Payback for C: years

Based on the payback periods, -Select-investment Ainvestment Binvestment CItem 4 should be chosen.