Investment-under the payback method

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Reference no: EM13804292

Assume a $6,500 investment and the following cash flows for two alternatives.

Year Investment X Investment Y

1 $1,000 $1,300

2 $1,800 $2,000

3 $1,700 $1,100

4 $2,000 $1,500

5 $ 600

Under the payback method, which of the following would be concluded?

A. Investment X should be selected.

B. Investment X & Y have the same payback period.

C. Investment Y should be selected.

D. Neither investment is acceptable under the payback method.

Reference no: EM13804292

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