Compute the payback period for both companies

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The Short-Line Railroad is considering a $165,000 investment in either of two companies. The cash flows are as follows:

Year Electric Co. Water Works

1 $ 90,000 $ 35,000

2 50,000 50,000

3 25,000 80,000

4 – 10 20,000 20,000

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

Electric Co___________________years

Water Works__________________years

Reference no: EM131341680

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