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?
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The management of Unter Corporation, an architectural design firm, is considering an investment with the following
| Year | Investment | |||
| 1 | $ | 73,000 | $ | 6,000 |
| 2 | $ | 6,000 | $ | 12,000 |
| 3 | $ | 20,000 | ||
| 4 | $ | 22,000 | ||
| 5 | $ | 25,000 | ||
| 6 | $ | 23,000 | ||
| 7 | $ | 21,000 | ||
| 8 | $ | 19,000 | ||
| 9 | $ | 18,000 | ||
| 10 | $ | 18,000 | ||
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?
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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 >The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Cash Inflow $ 4,000 $8,000 $ 11,000 $ 14,000 $ 17,000 $ 15,000 $13,000 $ 11,000 $ 10,000 $ 10,000 Year 1 2 3 4 5 6 7 8 9 10 Investment $ 58,000 $8,000 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. Note: Round your answer to 1 decimal place. Payback period years Required 1 Required 2 >Consider the cash flows for the following investment projects. Assume that MARR=12%/year. A B C 0 - PhP 1,000 – PhP 1,000 - PhP2,000 1 900 600 900 2 500 500 900 100 500 900 4 50 100 900 Which project should be selected using incremental analysis (AW method)? ANSWERS: AWA = PhP Blank 1 AWB = PhP Blank 2 AWC = PhP Blank 3 AW (B-A) = PhP Blank 4 AW (C-B) = PhP Blank 5 Investment Blank 6 (use capital letter) is better.