Assume a $6,500 investment and the following cash flows for two alternatives.
Year Investment X Investment Y
1 $1,000 $1,300
2 $1,800 $2,000
3 $1,700 $1,100
4 $2,000 $1,500
5 $ 600
Under the payback method, which of the following would be concluded?
A. Investment X should be selected.
B. Investment X & Y have the same payback period.
C. Investment Y should be selected.
D. Neither investment is acceptable under the payback method.