Determine payback period for investment


The firm has has a potential future projects that will generate cash flows of $32,000 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%. What is the payback period for this investment?

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Finance Basics: Determine payback period for investment
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