Investment and cash flows for two alternative


Problem: Assume a $50K investment and the following cash flows for two alternative. Which alternative would you select under the payback method?

Year investment A Investment B
1 $10,000 $20,000
2 11,000 25,000
3 13,000 15,000
4 16,000
5 30,000

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Finance Basics: Investment and cash flows for two alternative
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