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Exercise 12-1 (Algo) Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year

Exercise 12-1 (Algo) Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 2 3 4 Investment $ 71,000 $ 4,000 Cash Inflow $ 6,000 $ 12,000 $ 21,000 $ 22,000 5 $ 25,000 7 $ 23,000 $ 21,000 B $ 19,000 9 $ 18,000 $ 18,000 10 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 is 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 Required 2 > Exercise 12-1 (Algo) Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment 1 $ 71,000 $ 4,000 2 Cash Inflow $ 6,000 $12,000 $ 21,000 $ 22,000 $ 25,000 $ 23,000 $21,000 $ 19,000 $ 18,000 10 Required: $ 18,000 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 Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No

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