Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of their payback periods. Round your answers to one decimal place.
Year A B C
1 $ 2,500 $ 3,500 $ 0
2 2,500 2,700 500
3 2,500 1,800 1,300
4 2,500 1,100 4,300
5 2,500 800 5,800
Payback for A: years
Payback for B: years
Payback for C: years
Based on the payback periods, -Select-investment Ainvestment Binvestment CItem 4 should be chosen.
