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 | $42,000 | $3,000 |
| 2 | $5,000 | $6,000 |
| 3 | $12,000 | |
| 4 | $14,000 | |
| 5 | $16,000 | |
| 6 | $15,000 | |
| 7 | $13,000 | |
| 8 | $11,000 | |
| 9 | $10,000 | |
| 10 | $10,000 | |
| Required: | |
| 1. | Determine the payback period of the investment. (Round your answer to 1 decimal place.) |
| 2. | Would the payback period be affected if the cash inflow in the last year were several times as large? | ||||
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Audit Effectiveness Meeting The IT Challenge
Authors: Kamil Omoteso
1st Edition
1409434680, 978-1409434689
