The Short-Line Railroad is considering a $165,000 investment in either of two companies. The cash flows are as follows:
Year Electric Co. Water Works
1 $ 90,000 $ 35,000
2 50,000 50,000
3 25,000 80,000
4 – 10 20,000 20,000
Compute the payback period for both companies. (Round your answers to 1 decimal place.)
Electric Co___________________years
Water Works__________________years