The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 5 123456 $ 60,000 $ 4,000 $ 3,000 $ 8,000 3 $ 16,000 $ 17,000 $ 20,000 $ 18,000 7 $ 16,000 68 8 $ 14,000 9 $ 13,000 10 $ 13,000 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
The management of Unter Corporation, an architectural design firm, is considering an
investment with the following cash flows:
Year
Investment
Cash Inflow
5
123456
$ 60,000
$ 4,000
$ 3,000
$ 8,000
3
$ 16,000
$ 17,000
$ 20,000
$ 18,000
7
$ 16,000
68
8
$ 14,000
9
$ 13,000
10
$ 13,000
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 5 123456 $ 60,000 $ 4,000 $ 3,000 $ 8,000 3 $ 16,000 $ 17,000 $ 20,000 $ 18,000 7 $ 16,000 68 8 $ 14,000 9 $ 13,000 10 $ 13,000 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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