help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / The Short-Line Railroad is considering a $185,000 investment in either of two companies

The Short-Line Railroad is considering a $185,000 investment in either of two companies

Accounting

The Short-Line Railroad is considering a $185,000 investment in either of two companies. The cash flows are as follows: 
Year moo,. co. gator NOAH 995,000 945,000 2 45,000 45,000 3 45,000 95,000 25,000 25,000 
a. Calculate the payback period for the investment in Electric Co. a. Water Works. oommomo 
b. Which of the alternatives would you select under Me payback method, 
0 Electric Co. 0 Water Works 0 Both 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

a. Company         Payback periods

Electric Co.              3 years

Water Co.                 3 years

 

b. Both Electric Co. And Water Works has same payback period. But Electric Co. Recovered higher portion of investment early. So, Electric Co. is superior investment opportunity

Download Attached File

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)