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The Seattle Corporation has been presented with an investment opportunity that will yield cash flows of $30,000 per year in Years 1 through 3, $50,000
The Seattle Corporation has been presented with an investment opportunity that will yield cash flows of $30,000 per year in Years 1 through 3, $50,000 per year in Years 4 through 9, and $40,000 in Year 10. This investment will cost the firm $210,000 today, and the firms cost of capital is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment?
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