Hammer Saw Tools Is Considering a $7,000 Investment

question 45

Multiple Choice

Hammer Saw Tools is considering a $7,000 investment.Which of the following alternative cash inflows has the shortest payback period?

• A)$8,000 in Year 5
• B)$0 in Year 1, $8,000 in Year 2
• C)$1,500 per year for Years 1 through 5
• D)$3,000 in year 1, $2,500 per year for Years 3 and 4

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