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Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $15,000 per year in Years 1 and 2, $25,000 in
Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $15,000 per year in Years 1 and 2, $25,000 in Year 3, and $30,000 in Year 4. This investment will cost the firm $80,000 today, and the firms cost of capital is 10 percent. What is the payback period for this investment? (Round your answer to the nearest years.)
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