Assume a $90,000 investment and the following cash flows for two
alternatives: Year Investment A Investment B 1 $25,000 $40,000 2
30,000 40,000 3 25,000 28,000 4 19,000 __Calculate the payback for
Investments A and B. If the inflow in the fifth year for Investment
A was $25,000,000 instead of $25,000, would your answer change
under the payback method?