Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assume a $70,000 investment and the following cash

Assume a $70,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $15,000 $35,000 2 20,000 20,000 3 20,000 20,000 4 20,000 — 5 15,000 — a. Calculate the...

80.2K

Verified Solution

Question

Finance

Assume a $70,000 investment and the following cash flows for twoalternatives.

YearInvestment XInvestment Y
1$15,000$35,000
220,00020,000
320,00020,000
420,000—
515,000—


a. Calculate the payback for investment X and Y.(Do not round intermediate calculations. Round your answersto 2 decimal places.)
  



b. Which alternative would you select under thepayback method?
  

Investment X
Investment Y

Answer & Explanation Solved by verified expert
3.6 Ratings (327 Votes)
Investment X Year 0 1 2 3 4 5 Cashflowin 70000 15000 20000 20000 20000 15000 Cumulative Cashflowin 70000 55000 35000 15000 5000 20000 Payback Period    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Assume a $70,000 investment and the following cash flows for twoalternatives.YearInvestment XInvestment Y1$15,000$35,000220,00020,000320,00020,000420,000—515,000—a. Calculate the payback for investment X and Y.(Do not round intermediate calculations. Round your answersto 2 decimal places.)  b. Which alternative would you select under thepayback method?  Investment XInvestment Y

Other questions asked by students

Q

A) Use the Clapeyron equation to estimate (in bar/K) the slope of the solid-liquid phase boundary...

Chemistry
Q

How to find the diameter of a marble? Also convert it from liters to something cubed?

Chemistry
Q

QUESTION 1 Transmembrane proteins Identity markers 7 No energy Channel 4 1 Carrier 3 Transporters...

Biology
Q

In a step up transformer the turn ratio is 1 2 A leclanche cell e...

Physics
Q

bility uiz K Question 6 of 22 The access code for a gym locker consists...

Statistics
Q

Based on a poll 69 of Internet users are more careful about personal information when...

Statistics
Q

Find r(t) if r'(t) = t^7i + e^tj + 5te^5tk and r(0) = i +...

Calculus
Q

Express in terms of sums and differences of logarithms log a b 7 log a...

Algebra
Q

(d) On January 1,...

Accounting
Q

X Company purchased land from Y Company in exchange of common stocks. X issued 6000...

Accounting
Q

Required information [The following information applies to the questions displayed below.] Case A. Kapono Farms...

Accounting
Q

The Dakota Corporation had a 2021 taxable income of $28,500,000 from operations after all operating...

Accounting