Question: Multiple choice question: The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1

Multiple choice question:

The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 2, $35,000 per year in Years 3 through 9, and $40,000 in Year10. This investment will cost the firm $140,000 today, and the firm's required rate of return is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment?

The answer choices are below

a. 5.23 years

b. 4.28 years

c. 4.00 years

d. 6.12 years

Or e. 4.43 years

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