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Payback period years

Payback period years

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i only need help on question number 1 . can you show work please.
Exercise 12-1 (Algo) Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 7 8 9 10 Investment $ 78,000 $5,000 Cash Inflow $ 5,000 $ 10,000 $ 12,000 $ 15,000 $ 18,000 $ 16,000 $ 14,000 $ 12,000 $ 11,000 $ 11,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years < Required 1 Saved Required 2 > < Prev 1 of 6 = MacBook Pro Next >
Transcribed Image Text:Exercise 12-1 (Algo) Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 7 8 9 10 Investment $ 78,000 $5,000 Cash Inflow $ 5,000 $ 10,000 $ 12,000 $ 15,000 $ 18,000 $ 16,000 $ 14,000 $ 12,000 $ 11,000 $ 11,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years < Required 1 Saved Required 2 > < Prev 1 of 6 = MacBook Pro Next >
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