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Exercise 14-1 (Static) Payback Method [LO14-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment
Exercise 14-1 (Static) Payback Method [LO14-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment $15,000 $ 8,000 Year 1 2 3 4 5 6 7 Cash Inflow $1,000 $ 2,000 $ 2,500 $ 4,000 $5,000 $ 6,000 $5,000 $ 4,000 $3,000 $ 2,000 8 9 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 as 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 Exercise 14-1 (Static) Payback Method (L014-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment $15,000 $ 8,000 Year 1 2 3 4 5 6 7 8 9 10 Cash Inflow $1,000 $ 2,000 $ 2,500 $ 4,000 $5,000 $ 6,000 $5,000 $ 4,000 $3,000 $ 2,000 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? 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 Ono
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