Explain the payback method


Payback method (LO3) Assume a $200,000 investment and the following cash flows for two products: Year Product X Product Y 1 $60,000 $40,000 2 90,000 70,000 3 50,000 80,000 4 40,000 20,000 Which alternatives would you select under the payback method?

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Accounting Basics: Explain the payback method
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