The Short-Line Rallroad is considering a $130.000 investment in either of two companies. The cash flows are as follows: Year 1 2 3 4 - 10 Electric Co. $90,000 20,000 20,000 25,000 Water Works $20, eee 20,000 98,000 25,000 a. Calculate the payback period for the investment in Electric Co. and Water Works Investment A Investment B Payback period years years b. Which of the alternatives would you select under the payback method? Electric Co. O Water Works O Both