The Seattle Corporation Has Been Presented with an Investment Opportunity

question 72

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%.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

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Definitions:

Marital Satisfaction

A measure of the contentment and fulfillment individuals feel with their marriage and spouse.

Couples Without Children

Partnerships or marriages where the couple chooses to remain childfree or is unable to have children, focusing on their relationship without parenting.

Cohabitation

The act of living together and having a sexual relationship without being married.

Civil Union

A legally recognized arrangement similar to marriage, often designed for same-sex couples, granting them similar rights, protections, and responsibilities.