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?
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
