Mandela Limited has been presented with an investment opportunity which will yield cash flows of R30 000 per year in Years 1 through to 4, R35 000 per year in Years 5 through to 9, and R40 000 in Year 10. This investment will cost the firm R150 000 today, and the firm's cost of capital is 10%. Assume a 365-day year, and that cash flows occur evenly during the year. What is the payback period for this investment?
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