Question: Part 3: Exercise 14-1 (Algo) Payback Method [LO14-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash
Part 3:
Exercise 14-1 (Algo) Payback Method [LO14-1]
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Year | Investment | Cash Inflow | ||
1 | $ | 78,000 | $ | 5,000 |
2 | $ | 5,000 | $ | 10,000 |
3 | $ | 12,000 | ||
4 | $ | 15,000 | ||
5 | $ | 18,000 | ||
6 | $ | 16,000 | ||
7 | $ | 14,000 | ||
8 | $ | 12,000 | ||
9 | $ | 11,000 | ||
10 | $ | 11,000 | ||
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?
Required 1:
![Part 3:Exercise 14-1 (Algo) Payback Method [LO14-1]The management of Unter Corporation, an](https://s3.amazonaws.com/si.experts.images/answers/2024/06/667fa03ee05c2_126667fa03ece24b.jpg)
Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years Would the payback perlud be affected If the cash Inow In the last year were several times as large? @_
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