Assume a $270,000 investment and the following cash flows for two products: Year Product X Product 1 2 3 4 $ 70,000 $90,000 100,000 80,000 95,000 50,000 80,000 40,000 a. Calculate the payback for products X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product X Product Y years years b. Which alternative would you select under the payback method? O Product X is selected O Product Y is selected

Assume a $270,000 investment and the following cash flows for two products: Year Product X Product 1 2 3 4 $ 70,000 $90,000 100,000 80,000 95,000 50,000 80,000 40,000 a. Calculate the payback for products X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product X Product Y years years b. Which alternative would you select under the payback method? O Product X is selected O Product Y is selected

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 23SP

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please tell me which is the best option and formulate why, thanks
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