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 Cash Inflow $ 2,000 $ 4,000 $ 52,000 $ 9,000 .$ 10,000 $ 11,000 $ 14,000 $ 12,000 $ 10,000 $ 13,000 $ 12,000 $ 12,000 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?
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 Cash Inflow $ 2,000 $ 4,000 $ 52,000 $ 9,000 .$ 10,000 $ 11,000 $ 14,000 $ 12,000 $ 10,000 $ 13,000 $ 12,000 $ 12,000 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?
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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Question
![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
$ 52,000
$ 9,000
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?
Required 1
Cash Inflow
$ 2,000
$ 4,000
Complete this question by entering your answers in the tabs below.
.$ 10,000
$ 11,000
$ 14,000
$ 12,000
$ 10,000.
$ 13,000
$ 12,000
$ 12,000
Required 2
Payback period
Determine the payback period of the investment. (Round your answer to 1 decimal place.)
years
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa951095b-8fe2-4ec9-81e0-5c7669f4ee38%2F78c3464e-635e-4cac-9df9-0ba83114e848%2Fn0ut7gag_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$ 52,000
$ 9,000
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?
Required 1
Cash Inflow
$ 2,000
$ 4,000
Complete this question by entering your answers in the tabs below.
.$ 10,000
$ 11,000
$ 14,000
$ 12,000
$ 10,000.
$ 13,000
$ 12,000
$ 12,000
Required 2
Payback period
Determine the payback period of the investment. (Round your answer to 1 decimal place.)
years
< Required 1
Required 2 >
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