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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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