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Payback method Assume a $40,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $ 6,000 $15,000 2 8,000
Payback method Assume a $40,000 investment and the following cash flows for two alternatives.
| Year | Investment X | Investment Y |
| 1 | $ 6,000 | $15,000 |
| 2 | 8,000 | 20,000 |
| 3 | 9,000 | 10,000 |
| 4 | 17,000 | |
| 5 | 20,000 |
Which of the alternatives would you select under the payback method?
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