Posted by **PLewis** on Sunday, April 24, 2011 at 5:53pm.

Assume a $4,000 investment and the following cash flows for two alternatives.

Year Investment X Investment Y

1 $1,000 $1,300

2 800 2,800

3 700 100

4 1,900

5 2,000

a. Under the payback method, which investment should be chosen? (Show your work/analysis/calculations for each investment).

b. Why do other methods allow for a better analysis?

- Finance -
**diana**, Wednesday, September 5, 2012 at 12:32pm
How much will Pauline pay in interest if she takes out a simple interest loan with a principal of $3,900 at 7.2% for three years?

- Finance -
**Bryant**, Sunday, November 25, 2012 at 4:56pm
Calculate the return on investment in dollars and as a percentage for an investment that you purchase for $500 and sell for $600.

## Answer This Question

## Related Questions

- Accounting - Assume a $4000 investment and the following cash flows for two ...
- finance - What is the payback period of the following project? Initial ...
- Financial management - evaluates investment opportunities using payback. The ...
- Finance - A company has identified the following investments as looking ...
- Finance - Firm is contemplating the purchase of a new warehouse inventory ...
- mathematical finance - The yearly cash flows of an investment are(-1000,-1200,...
- accounting 2 - June 30, 2008/2007 Assets Cash- 34,700/23,500 accounts receivable...
- Managerial finance - Superior Manufacturing is lauching a new product, that is ...
- accounting - A new inventory management system for ABC Company could be ...
- fiance - 2. Analyze the following scenario: Duncombe Village Golf Course is ...

More Related Questions