Question
The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows of $50,000 per year in Years 1
The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows of $50,000 per year in Years 1 through 4, $35,000 in Year 5 and 40,000 in year 10. This investment will cost the firm $250,000 today, and the firm's required rate of return is 10 percent. What is the payback period for this investment?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
