The management of Unter Corporation, an architectural design firm, is considering an investment with the following ash flows: Year Investment Cash Inflow 1 $ 61,000 2 $5,000 3 4 5 6 7 8 9 10 $3,000 $6,000 $ 12,000 $ 13,000 $ 16,000 $ 10,000 $ 8,000 $10,000 $9,000 $9,000 Required: 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 ash flows: Year Investment Cash Inflow 1 $ 61,000 2 $5,000 3 4 5 6 7 8 9 10 $3,000 $6,000 $ 12,000 $ 13,000 $ 16,000 $ 10,000 $ 8,000 $10,000 $9,000 $9,000 Required: 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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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