Find what is the payback period for the investment

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Question 1: Klein Pharmacy has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the form $150,000 today, and the firm's cost of capital is 10%. What is the payback period for this investment?

a. 5.23 years

b. 4.86 years

c. 4.00 years

d. 6.12 years

e. 4.35 years

Reference no: EM132554092

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