Explore BrainMass

Explore BrainMass

    Payback Period

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume a $50K investment and the following cash flows for two alternative. Which alternative would you select under the payback method?
    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

    © BrainMass Inc. brainmass.com December 15, 2022, 6:45 pm ad1c9bdddf
    https://brainmass.com/business/payback-period-and-discounted-payback-period/payback-period-investment-170107

    Solution Preview

    Assume a $50K investment and the following cash flows for two alternative. which alternative would you select under the payback method?
    Year investment A Investment B
    1 $10,000 $20,000
    2 11,000 25,000
    3 13,000 15,000
    4 ...

    Solution Summary

    The solution evaluates the cash flows under 2 alternatives using payback method.

    $2.49

    ADVERTISEMENT