Question
The Short-Line Railroad is considering a $190,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1
The Short-Line Railroad is considering a $190,000 investment in either of two companies. The cash flows are as follows:
| Year | Electric Co. | Water Works | ||||
| 1 | $ | 85,000 | $ | 40,000 | ||
| 2 | 55,000 | 65,000 | ||||
| 3 | 50,000 | 85,000 | ||||
| 4 10 | 10,000 | 10,000 | ||||
|
| ||||||
a. Compute the payback period for both companies. (Round your answers to 1 decimal place.)
| Electric Co. | years | |
| Water Works | years |
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Asset Management And Institutional Investors
Authors: Ignazio Basile, Pierpaolo Ferrari
1st Edition
331932795X,3319327968
