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 $100,000 today, and the firm's cost of capital is 10%. Assume cash flows occur evenly during the year.
A) 5.23 years
B) 4.26 years
C) 4.35 years
D) 3.72 years
Answer: B
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List three measures of efficiency.
What will be an ideal response?
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