Payback method of evaluating investments


Question: Assuming a $50,000 investment and the following two cash flows, which of the two alternatives would you select under the payback method of evaluating investments?

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: Payback method of evaluating investments
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