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Problem 12-9 Payback method LO12-3] The Short-Line Railroad is considering a $205,000 investment in either of two companies. The cash flows are as follows Year
Problem 12-9 Payback method LO12-3] The Short-Line Railroad is considering a $205,000 investment in either of two companies. The cash flows are as follows Year Electric Co, Water S 100,000 45,000 60,000 30,000 $ 45,000 60,000 100,000 30,000 4-10 a. Compute the payback period for both companies. (Round your answers to 1 decimal place.) Electric Co. years Water Works years b. Which of the investments is superior from the infomation provided? O Water Works Electric Co
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