What is the payback period for this investment

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Reference no: EM131982995

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.

a. What is the payback period for this investment?

b. What is the NPV for this investment?

Reference no: EM131982995

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