Three investments cost $5,500 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place. Year A B C 1 $ 3,000 $ 4,300 $ 0 2 3,000 3,500 800 3 3,000 2,900 1,000 4 3,000 2,500 2,500 5 3,000 2,100 4,000 Payback for A: years Payback for B: years Payback for C: years Based on the payback periods, should be chosen.
Three investments cost $5,500 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place. Year A B C 1 $ 3,000 $ 4,300 $ 0 2 3,000 3,500 800 3 3,000 2,900 1,000 4 3,000 2,500 2,500 5 3,000 2,100 4,000 Payback for A: years Payback for B: years Payback for C: years Based on the payback periods, should be chosen.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Three investments cost $5,500 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place.
| Year | A | B | C | |||
| 1 | $ | 3,000 | $ | 4,300 | $ | 0 |
| 2 | 3,000 | 3,500 | 800 | |||
| 3 | 3,000 | 2,900 | 1,000 | |||
| 4 | 3,000 | 2,500 | 2,500 | |||
| 5 | 3,000 | 2,100 | 4,000 |
Payback for A: years
Payback for B: years
Payback for C: years
Based on the payback periods, should be chosen.
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