Assume a $62,000 investment and the following cash flows for two alternatives. Year Investment X Investment...

Assume a $62,000 investment and the following cash flows for two alternatives.

Year	Investment X		Investment Y
1		$20,000		$35,000
2		15,000		15,000
3		15,000		22,000
4		15,000		—
5		25,000		—

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? Investment X or Y?

Expert Solution

jeff jeffy answered 8 months ago

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