The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment Cash Inflow Year 1234567899 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 15.0 years < Required 1 Required 2 >
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment Cash Inflow Year 1234567899 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 15.0 years < Required 1 Required 2 >
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...
Related questions
Question
![The management of Unter Corporation, an architectural design firm, is considering an investment
with the following cash flows:
Investment Cash Inflow
Year
1234567899
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
15.0 years
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1ec6c35-c388-4a7c-9c74-37df7cdcbbae%2Fa3650e1a-324f-4483-8e48-0118ad68ca95%2F44eo3e_processed.png&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:
Investment Cash Inflow
Year
1234567899
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
15.0 years
< Required 1
Required 2 >
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