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Problem 12-9 Payback method [L012-3] The Short-Line Railroad is considering a $140,000 investment in either of two companies. The cash flows are as follows Year
Problem 12-9 Payback method [L012-3] The Short-Line Railroad is considering a $140,000 investment in either of two companies. The cash flows are as follows Year Water Works 2 3 4-10 Electric Co $ 85,000 25,000 30,000 10,000 $ 30,000 25,000 85,000 10,000 a. Compute the payback period for both companies Payback Electric Co years Water Works years b. Which of the investments is superior from the information provided? Electric Co Water Works
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