es 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 Investment $ 78,000 Cash Inflow $ 5,000 $ 5,000 $ 10,000 $ 12,000 $ 15,000 $ 18,000 $ 16,000 $ 14,000 9 10 Required: $ 12,000 $ 11,000 $ 11,000 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.) period years Required 2 >

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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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Year
Cash Inflow
1
Investment
$ 78,000
$ 5,000
$ 5,000
$ 10,000
$ 12,000
1234567890
10
Required:
$ 15,000
$ 18,000
$ 16,000
$ 14,000
$ 12,000
$ 11,000
$ 11,000
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.
es
Required 1
Required 2
Determine the payback period of the investment. (Round your answer to 1 decimal place.)
period
years
Required 2 >
Transcribed Image Text:The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Cash Inflow 1 Investment $ 78,000 $ 5,000 $ 5,000 $ 10,000 $ 12,000 1234567890 10 Required: $ 15,000 $ 18,000 $ 16,000 $ 14,000 $ 12,000 $ 11,000 $ 11,000 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. es Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) period years Required 2 >
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