Question: XYZ, Inc. is considering a $140,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1.......... $85,000 $30,000 2.......... 25,000 25,000 3.......... 30,000 85,000 4-10..... 10,000 10,000 a. Using the payback method, what will the decision be? b. Explain why the answer in part a can be misleading.