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CVS Pharmacy 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
CVS Pharmacy 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 Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10%. What is the payback period for this investment?
5.23 years
4.86 years
4.00 years
6.12 years
4.35 years
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