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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 1 $78,000 $5,000 2 $5,000 $10,000 3 $12,000 4 $15,000 5 $18,000 60 $16,000 7 $14,000 00 8 $12,000 9 $11,000 10 $11,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) 2 Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $78,000 $5,000 2 $5,000 $10,000 3 $12,000 4 $15,000 5 $18,000 60 $16,000 7 $14,000 00 8 $12,000 9 $11,000 10 $11,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) 2 Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No

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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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $78,000 $5,000 2 $5,000 $10,000 3 $12,000 4 $15,000 5 $18,000 60 $16,000 7 $14,000 00 8 $12,000 9 $11,000 10 $11,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) 2 Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No
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 1 $78,000 $5,000 2 $5,000 $10,000 3 $12,000 4 $15,000 5 $18,000 60 $16,000 7 $14,000 00 8 $12,000 9 $11,000 10 $11,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) 2 Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No
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