B&E Incorporated is trying to select the best alternative
from two options. Each alternative has an initial cash outlay of
$100,000. The cash flows for the alternatives are as follows:
Year
Investment A
Investment B
1
$ 10,000
$ 50,000
2
20,000
40,000
3
30,000
30,000
4
5
40,000
150,000
0
0
For each alternative investments, compute the Payback Method and
select the best investment (using the Payback Method Results).