The management of Unter Corporation, an architectural design firm, is considerin

Question

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

  

  

Determine the payback period of the investment. (Round your answer to 1 decimal place.)

Pay back period in years

Would the payback period be affected if the cash inflow in the last year were several times as large?

rev: 03_16_2015_QC_CS-11022

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Explanation / Answer

Answer:1 5 years

Answer:2

1. Determine the payback period of the investment. Investment Cash Cash Unrecovered Year Outflow Inflow Investment 1 ($66,000) $5,000 ($61,000) 2 ($6,000) $10,000 ($57,000) 3 $20,000 ($37,000) 4 $17,000 ($20,000) 5 ***** $20,000 $0 6 ***** $18,000 $18,000 7 $16,000 $34,000 8 $14,000 $48,000 9 $13,000 $61,000 10 $13,000 $74,000 Payback = 5 0.00 5.0 years

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.