Payback Method The management of Deitrich Inc., a civil engineering design company, is considering an investment in
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Question:
Payback Method
The management of Deitrich Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows:
YearInvestmentCash Inflow
1 $28,000$2,000
2 $4,000$3,000
3$6,000
4$8,000
5$9,000
6$8,000
7$6,000
8$5,000
9$4,000
10$4,000
Required:
1.Determine the payback period of the investment.
2.Would the payback period be affected if the cash inflow in the last year was several times larger?
Related Book For
Corporate Financial Accounting
ISBN: 978-1305653535
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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