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Which of the alternatives would you select Payback method (LO12-3) 8. Assume a $90,000 investment and the following cash flows for two alternatives: Year
Which of the alternatives would you select Payback method (LO12-3) 8. Assume a $90,000 investment and the following cash flows for two alternatives: Year 1 2 3 4 5 Investment A $25,000 30,000 25,000 19,000 25,000 Investment B $40,000 40,000 28,000 a. Calculate the payback for Investments A and B. b. If the inflow in the fifth year for Investment A was $25,000,000 instead of $25,000, would your answer change under the payback method? Payback method (LO12-3) page 409
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