In: Finance
Three investments cost $5,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place.
Year | A | B | C | |||
1 | $ | 1,800 | $ | 2,800 | $ | 0 |
2 | 1,800 | 2,100 | 1,000 | |||
3 | 1,800 | 1,400 | 1,700 | |||
4 | 1,800 | 1,100 | 3,000 | |||
5 | 1,800 | 500 | 5,500 |
Payback for A: years ?
Payback for B: years ?
Payback for C: years ?
Based on the payback periods, -Select-investment (A,B,C)should be chosen.