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Hospital Corporation of America (HCA) has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through
Hospital Corporation of America (HCA) has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, and $40,000 per year in Years 5 through 8. This investment will cost the firm $200,000 today. Assume cash flows occur evenly during the year. What is the payback period for this investment?
3.5 years
5.0 years
6.0 years
None of the above
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