Question
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $54,000 $4,000
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
| Year | Investment | Cash Inflow |
| 1 | $54,000 | $4,000 |
| 2 | $ 4,000 | $8,000 |
| 3 | $16,000 | |
| 4 | $17,000 | |
| 5 | $20,000 | |
| 6 | $18,000 | |
| 7 | $16,000 | |
| 8 | $14,000 | |
| 9 | $13,000 | |
| 10 | $13,000 | |
|
| ||
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?
| Yes | |
| No |
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Audit Criteria For Electronic Document Management Processes And Associated IT Solutions
Authors: Alexander D Balzer, Dr Klaus-Peter Elpel, Volker Feist
5th Edition
3932898281, 978-3932898280
