10 - You were given two investment options, A and B. Calculate the payback period for both. Based only
on the payback period, which option is the most advantageous?
Year
A
B
0
-15,000 -20,000
1
6,000 5,000
2
6,000
5,000
3
6,000
8,000
4
6,000 11,000
5
6,000 14,000
Answer: Payback for A is 2.5 years and for B is 3.2 years, thus A is better.