The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow $51,000 $8,000 $4,000 $8,000 $16,000 $17,000 $20,000 $18,000 $16,000 $14,000 $13,000 $13,000 1 2 3 4 7 8 9 10 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Yes O No

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow $51,000 $8,000 $4,000 $8,000 $16,000 $17,000 $20,000 $18,000 $16,000 $14,000 $13,000 $13,000 1 2 3 4 7 8 9 10 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Yes O No

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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