The Short-Line Railroad is considering a $205,000 investment in either of two companies. The cash flows...
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The Short-Line Railroad is considering a $205,000 investment in either of two companies. The cash flows are as follows: Year 1 2 3 4 to 10 Electric Company Water Works $ 100,000 $ 45,000 60,000 100,000 30,000 45,000 60,000 30,000 a. Compute the payback period for both companies. Note: Round your answers to 1 decimal place. Electric Company Water Works years years b. Which of the investments is superior from the information provided? O Electric Company O Water Works E The Short-Line Railroad is considering a $205,000 investment in either of two companies. The cash flows are as follows: Year 1 2 3 4 to 10 Electric Company Water Works $ 100,000 $ 45,000 60,000 100,000 30,000 45,000 60,000 30,000 a. Compute the payback period for both companies. Note: Round your answers to 1 decimal place. Electric Company Water Works years years b. Which of the investments is superior from the information provided? O Electric Company O Water Works E
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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