Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started