Question
The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 and 2, $37,000
The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 and 2, $37,000 per year in Years 3 and 4, and $40,000 in Year 5. This investment will cost the firm $80,000 today, and the firm's cost of capital is 10 percent. What is the discounted payback period for this investment?
| 2 years | ||
| 3 years | ||
| 4 years | ||
| 2.5 years |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
