Assume a $90,000 investment and the following cash flows for two alternatives. a. Calculate the payback for
Question:
a. Calculate the payback for investment 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 paybackmethod?
Transcribed Image Text:
Year Investment A $25,000 30,000 25,000 19,000 25,000 Investment B $40,000 40,000 28,000
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a Payback for Investment A Payback for Investment B 90000 25...View the full answer
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Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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