1. Hospital Corporation of America (HCA) has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, and $40,000 per year in Years 5 through 8. This investment will cost the firm $200,000 today. Assume cash flows occur evenly during the year. What is the payback period for this investment?

3.5 years

5.0 years

6.0 years

None of the above

2. The primary financial goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run

A) value of the firm's common stock.

B) welfare of the firm's stakeholders.

C) social value of the firm.

D) sustainability of the firm.

E) profit of the firm.