Three investments cost $5,000 each and have the following cash flows. Rank them on the basis of

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Three investments cost $5,000 each and have the following cash flows. Rank them on the basis of their payback periods. Does the ranking make intuitive sense?

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Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Question Posted: Mar 19, 2015 09:30 AM

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Three investments cost $5,000 each and have the following cash flows. Rank them on the basis of

Question:

Year $2,000 2,000 2,000 2,000 2,000 $3,000 2,000 1,000 500 $ 500 1,000 3,000 7,000 9,000

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Payback for A 25 years 2 years and 6 months Payback for B 2 years Payback for C 3 ye...View the full answer

Basic Finance An Introduction to Financial Institutions Investments and Management

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