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Author Question: Investment A:Year:012345Cash flow:-$14,000$6,000$6,000$6,000$6,000$6,000Investment B:Year:012345Cash ... (Read 53 times)

waynest

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Investment A:
Year:012345
Cash flow:-$14,000$6,000$6,000$6,000$6,000$6,000
Investment B:
Year:012345
Cash flow:-$15,000$7,000$7,000$7,000$7,000$7,000
Investment C:
Year:012345
Cash flow:-$18,000$12,000$4,000$4,000$4,000$4,000

The cash flows for three projects are shown above. The cost of capital is 7.5%. If an investor decided to take projects with a payback period two years or less, which of these projects would he take?
◦ Investment A
◦ Investment B
◦ Investment C
◦ none of these investments


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Marked as best answer by waynest on Jul 9, 2019

raili21

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