The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. Assume cash flow occurs evenly during the year, 1/365th each day. What is the payback period for this investment?
Get Answers For Free
Most questions answered within 1 hours.