### What is the payback period for this investment

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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 l through 4; \$35,000 per year in Years 5 through 9; and \$40,000 in Year l0. This investment will cost the firm \$150,000 today, and the firm's cost of capital is 10 percent. Assume cash flows occur evenly during the year. What is the payback period for this investment (one decimal point)?

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