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Three investments cost $4,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one
Three investments cost $4,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place.
Year | A | B | C | |||
1 | $ | 2,000 | $ | 3,100 | $ | 0 |
2 | 2,000 | 2,200 | 500 | |||
3 | 2,000 | 1,200 | 1,000 | |||
4 | 2,000 | 700 | 2,200 | |||
5 | 2,000 | 400 | 4,200 |
Payback for A: years
Payback for B: years
Payback for C: years
Based on the payback periods, -Select-investment Ainvestment Binvestment CItem 4should be chosen.
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