Question
Exercise 11-1 Payback Method [LO11-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment
Exercise 11-1 Payback Method [LO11-1]
| The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: |
| Year | Investment | Cash Inflow |
| 1 | $60,000 | $2,000 |
| 2 | $4,000 | $4,000 |
| 3 | $8,000 | |
| 4 | $9,000 | |
| 5 | $12,000 | |
| 6 | $10,000 | |
| 7 | $8,000 | |
| 8 | $5,000 | |
| 9 | $4,000 | |
| 10 | $4,000 | |
| Required: | |
| 1. | Determine the payback period of the investment. (Round your answer to 1 decimal place. |
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Auditing And Edp Objective Questions And Explanations
Authors: Irvin N. Gleim, William A. Hillison
5th Edition
0917537521, 978-0917537523
