The Seattle Corporation Has Been Presented with an Investment Opportunity

question 71

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 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?

• 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:

Sartre

pertains to Jean-Paul Sartre, a French existentialist philosopher, playwright, novelist, and political activist known for his exploration of freedom, existentialism, and phenomenology.

Existentialists

Philosophers who focus on individual freedom, choice, and subjective experience, emphasizing the creation of meaning in an inherently meaningless world.

Bad Faith

A term in existentialist philosophy where one denies their true self or nature, often out of self-deception or conforming to social norms.

Self-Determination Theory

A psychological theory of motivation that emphasizes the role of intrinsic motivations in personal growth and behavioral self-regulation.