The Sprout Corporation has been presented with an investment opportunity which will yield cash flows of $ 30,000 per year in years 1-4, $ 35,000 in years 5 thru 9 and $ 40,000 in year 10. This investment will cost the firm $ 150,000 and the firms cost of capital is 10 percent. What is the payback period for this investment?

a. 5.23 years

b. 4.86 years

c. 4 years

d. 6.12 years

e. 4.35 years

1. a.5.23 years
2. b.4.86 years
3. c.4.00 years
4. d.6.12 years
5. e.4.35 years