The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1234567899 10 $ 30,000 $ 1,000 $ 3,000 $ 2,000 $ 4,000 $ 5,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $ 1,000 $ 1,000 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 years

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
Investment Cash Inflow
1234567899
10
$ 30,000
$ 1,000
$ 3,000
$ 2,000
$ 4,000
$ 5,000
$ 8,000
$ 6,000
$ 4,000
$ 2,000
$ 1,000
$ 1,000
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
years
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 1234567899 10 $ 30,000 $ 1,000 $ 3,000 $ 2,000 $ 4,000 $ 5,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $ 1,000 $ 1,000 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 years
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ISBN:
9781947172609
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Publisher:
OpenStax College