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Problem 12-8 Payback method [L012-3] Assume a $60,000 investment and the following cash flows for two alternatives. Investment B Year Investment A S 15,000 15,000

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Problem 12-8 Payback method [L012-3] Assume a $60,000 investment and the following cash flows for two alternatives. Investment B Year Investment A S 15,000 15,000 20,000 20,000 30,000 $ 45,000 10,000 25,000 2 a. Calculate the payback for investment A and B. (Round your answers to 2 decimal places.) Investment A years Investment B years b. Which investment would you select under the payback method? Investment A O Investment B c. If the inflow in the fifth year for Investment A was $30,000,000 instead of $30,000, would your answer change under the payback method? O Yes O No

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