Determine what is the payback period for the investment

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Question 1: MYEG Public Limited has been presented with an investment opportunity that 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, what is the payback period for this investment?

Reference no: EM132584861

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