1. The AZ Corporation has been presented with an investment opportunity which will yield 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 Year10. This investment will cost the firm $150,000 today, and the firm's required rate of return is 10 per cent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? Using the even cash flow distribution assumption, the project will completely recover initial investment after 30/35 = 0.86 of Year 5