Solution-Determine the payback period of the investment

Determine the payback period of the investment

Assignment Help Managerial Accounting

Reference no: EM132861985

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

Year	Investment	Cash Inflow
1	$65,000	$5,000
2	$5,000	$10,000
3	$20,000
4	$22,000
5	$25,000
6	$23,000
7	$21,000
8	$19,000
9	$18,000
10	$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?

Reference no: EM132861985

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Determine the payback period of the investment

Reference no: EM132861985

Reference no: EM132861985

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