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Which of the following investments would be accepted under the payback method: Both investments require and initial cash outlay. Cash Inflows Investment A Investment B
Which of the following investments would be accepted under the payback method:
Both investments require and initial cash outlay.
Cash Inflows Investment A Investment B
year 1 $15,000 $5,000
year 2 $ 35,000 $10,000
year 3 $60,000 $15,000
year 4 $35,000 $30,000
year 5 $15,000 $100,000
-Investment B should be selected
-Investment A should be selected
-Neither investment should be selected
-Both investments yield the same reults
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