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1. TheSeattleCorporationhasbeenpresentedwithaninvestmentopportunitywhichwill
yieldcashflowsof$30,000peryearinYears1through4,$35,000peryearinYears5
through9,and$40,000inYear10.Thisinvestmentwillcostthefirm$150,000today,and
thefirm'srequiredrateofreturnis10percent.Assumecashflowsoccurevenlyduring
theyear,1/365theachday.Whatisthepaybackperiodforthisinvestment?

Year

ProjectA

ProjectB

$50,000

$~~50,000

~~~15,990

~~~15,990

~~~15,990

~~~15,990

~~~15,990

100,560

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