Calculate the payback for investment

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Reference no: EM131530920

Assume a $60,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y

Year Investment X Investment Y

1 $10,000 $30,000

2 15,000 20,000

3 17,000 15,000

4 30,000 —

5 10,000 —

a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Which alternative would you select under the payback method?

Investment X Investment Y

Reference no: EM131530920

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