Question: 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?