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Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one
Three investments cost $7,000 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 | $ | 2,500 | $ | 3,500 | $ | 0 |
2 | 2,500 | 2,700 | 500 | |||
3 | 2,500 | 1,800 | 1,300 | |||
4 | 2,500 | 1,100 | 4,300 | |||
5 | 2,500 | 800 | 5,800 |
Payback for A: years
Payback for B: years
Payback for C: years
Based on the payback periods, -Select-investment Ainvestment Binvestment CItem 4 should be chosen.
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