Assume a $300,000 Investment and the following cash flows for two products: Year Product X Product Y 1 2 3 4 $ 90,000 100,000 20,000 50,000 $ 100,000 100,000 90,000 50,000 a. Calculate the payback for products X and Y. Note: Do not round Intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Product X 0.00 Product Y 3.20 years years b. Which alternative would you select under the payback method? Product Y is selected O Product X is selected

Assume a $300,000 Investment and the following cash flows for two products: Year Product X Product Y 1 2 3 4 $ 90,000 100,000 20,000 50,000 $ 100,000 100,000 90,000 50,000 a. Calculate the payback for products X and Y. Note: Do not round Intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. Product X 0.00 Product Y 3.20 years years b. Which alternative would you select under the payback method? Product Y is selected O Product X is selected

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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