The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 2 3 4 5 6 7 8 9 10 Investment $ 60,000 $ 3,000 Cash Inflow $ 4,000 $ 8,000 $ 16,000 $ 17,000 20,000 Required 1 Required 2 $ $ 18,000 $ 16,000 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? $ 14,000 $ 13,000 $ 13,000 Complete this question by entering your answers in the tabs below. Payback period Determine the payback period of the investment. (Round your answer to 1 decimal place.) years

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 2 3 4 5 6 7 8 9 10 Investment $ 60,000 $ 3,000 Cash Inflow $ 4,000 $ 8,000 $ 16,000 $ 17,000 20,000 Required 1 Required 2 $ $ 18,000 $ 16,000 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? $ 14,000 $ 13,000 $ 13,000 Complete this question by entering your answers in the tabs below. Payback period Determine the payback period of the investment. (Round your answer to 1 decimal place.) years

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...

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