The Seattle Corporation Has Been Presented with an Investment Opportunity

question 46

Multiple Choice

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 percent. Assume cash flows occur evenly during the year, 1/365th each day. 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

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Definitions:

Eclectic Psychotherapist

A therapist who combines techniques and theories from various psychological orientations and traditions according to the client's individual needs.

Theories

Systematically organized principles or explanations proposed to understand phenomena and facilitate predictions in various disciplines.

Methods

Techniques, strategies, or procedures used in the pursuit of knowledge, for problem-solving, or in conducting research.

Self-help Groups

Peer-led groups that offer members support and advice for managing or overcoming specific illnesses, conditions, or life challenges.