Problem 19-05 Three investments cost $6,000 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 $ 2,600 $ 3,700 $ 0 2 2,600 2,700 900 3 2,600 2,000 1,600 4 2,600 1,600 3,100 5 2,600 1,200 4,600 Payback for A: years Payback for B: years Payback for C: years Based on the payback periods, should be chosen.
Problem 19-05 Three investments cost $6,000 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 $ 2,600 $ 3,700 $ 0 2 2,600 2,700 900 3 2,600 2,000 1,600 4 2,600 1,600 3,100 5 2,600 1,200 4,600 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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Problem 19-05 Three investments cost $6,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place.
Payback for A: years Payback for B: years Payback for C: years Based on the payback periods, should be chosen.
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