Compute the payback period for both companies

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The Short-Line Railroad is considering a $200,000 investment in either of two companies. The cash flows are as follows:

Year Electric Co. Water Works
1 $ 100,000
$ 50,000
2
50,000

50,000
3
50,000

100,000
4 - 10
25,000

25,000

Compute the payback period for both companies. (Round your answers to 1 decimal place.)

Electric Co= ____years

Water Company= ____ years

Reference no: EM131985025

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