The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 123456789 10 $ 15,000 $ 1,000 $ 8,000 $ 2,000 $ 2,500 $ 4,000 $ 5,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 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 Required >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Year
Investment Cash Inflow
123456789
10
$ 15,000
$ 1,000
$ 8,000
$ 2,000
$ 2,500
$ 4,000
$ 5,000
$ 6,000
$ 5,000
$ 4,000
$ 3,000
$ 2,000
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
Required
>
Transcribed Image Text:The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 123456789 10 $ 15,000 $ 1,000 $ 8,000 $ 2,000 $ 2,500 $ 4,000 $ 5,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 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 Required >
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