What is the discounted payback period for this investment

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Reference no: EM131056468

The Seattle Corporation 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 firm $150,000 today, and the firm's cost of capital is 10%. Assume cash flows occur evenly during the year, 1/365th each day. What is the discounted payback period for this investment? A) 5.23 years B) 4.86 years C) 4.35 years D) 3.72 years

Reference no: EM131056468

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