HW Chpt 12 Saved Help Save & Exit Check my 4 The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 4 1 000'99 $ $ 5,000 points 2 $ 6,000 $ 10, 000 3 $ 20, 000 4 000'LI $ 5 $ 20, 000 eBook 6 $ 18, 000 7 000 '91 $ Hint 000 'DT $ LD 00 $ 13, 000 Print 10 $ 13, 000 References 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 Required 2 > Mc Prev 4 of 8 Next >HW Chpt 12 i Saved Help Save & Exit Submit Check my work 5 Information on four investment proposals is given below: Investment Proposal 4 A B C D points Investment required (000 042 ) $ (000 '06) $ (000 'BOT) $ $ (2, 800, 080) Present value of cash inflows 393, 500 127 , 100 151, 300 3,738,500 Net present value $ 123, 500 $ 37 , 100 $ 51, 300 $ 938,500 Life of the project eBook 5 years 7 years 6 years 6 years Hint Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) Print 2. Rank the proposals in terms of preference. References Investment Profitability Rank Proposal Index Preference A B C D Mc Graw