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CIS-SIR
  • Exam Code: CIS-SIR
  • Exam Name: Certified Implementation Specialist - Security Incident Response Exam
  • Version: V15.95
  • Q & A: 258 Questions and Answers

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NEW QUESTION: 1
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. What is the payback period for this investment?
A. 6.12 years
B. 4.86 years
C. 4.00 years
D. 5.23 years
E. 4.35 years
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Using the even cash flow distribution assumption, the project will completely recover initial investment after
30/35 = 0.86 of Year 5:
Payback = 4 + 30/35 = 4.86 years.

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