The Bronx Corporation is considering an investment that 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 required rate of return is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment?

6.12 years

4.35 years

4.86 years

5.23 years

4.00 years

Flag this QuestionQuestion 235ptsFinancial Calculator Section The following question(s) may require the use of a financial calculator.

You are the capital budgeting director for Stoffer Company and must evaluate the feasibility of a new project. The project has a net cost of $5 million in Year 0 (today), and it will provide net cash inflows of $1 million at the end of Year 1, $1.5 million at the end of Year 2, and $2 million at the end of Years 3 through 5. Within what range is the project's IRR?

16-17%

15-16%

18-19%

14-15%

17-18%