The management of Unter Corporation; an architectural design firm, is considering an investment with the following cash flows: Cash Year Investment Inflow $ 4,000 1 $51,000 2 $ 8,000 $ 8,000 3 $16,000 4 $17,000 $20,000 $18,000 $16,000 $14,000 $13,000 $13,000 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. S6TBSg 5 10

The management of Unter Corporation; an architectural design firm, is considering an investment with the following cash flows: Cash Year Investment Inflow $ 4,000 1 $51,000 2 $ 8,000 $ 8,000 3 $16,000 4 $17,000 $20,000 $18,000 $16,000 $14,000 $13,000 $13,000 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. S6TBSg 5 10

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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