The management of Unter Corporation, an architectural design firm, is considering an investment with 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 1 23456 a 7 8 9 10 Investment $ 73,000 $ 6,000 Cash Inflow $6,000 $ 12,000 $ 20,000 $ 22,000 $ 25,000 $ 23,000 $ 21,000 $ 19,000 $ 18,000 $ 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? 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 The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 23456 a 7 8 9 10 Investment $ 73,000 $ 6,000 Cash Inflow $6,000 $ 12,000 $ 20,000 $ 22,000 $ 25,000 $ 23,000 $ 21,000 $ 19,000 $ 18,000 $ 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? 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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To determine the payback period of the investment we need to calculate the time it takes for the cum... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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