The Short-Line Railroad is considering a $180,000 investment in either of two companies. The cash flows are as follows:
YearElectric CompanyWater Works1$ 80,000$ 30,000250,00070,000350,00080,0004 to 1020,00020,000
Compute the payback period for both companies.
Note: Round your answers to 1 decimal place.
Which of the investments is superior from the information provided?
multiple choice
Water Works
Electric Company