Question
Stoney Corporation invest $6,500 each in projects X & Y. Cash flows from these investments are listed: Year Investment X Investment Y 1 $1,000 $1,300
Stoney Corporation invest $6,500 each in projects X & Y. Cash flows from these investments are listed:
Year Investment X Investment Y
1 $1,000 $1,300
2 $1,800 $2,000
3 1,700 1,100
4 2,000 1,500
5 600
Calculate the payback in years for each project. Should you choose X or Y using the payback method?
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
