The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 52,000 2 $ 9,000 3 4 5 6 7 8 9 $ 2,000 $ 4,000 $ 10,000 $ 11,000 $ 14,000 $ 12,000 $ 10,000 $ 13,000 $ 12,000 10 $ 12,000 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 Determine the payback period of the investment. Note: Round your answer to 1 decimal place. Payback period years
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- There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following cash flows: Use the information from the previous exercise to calculate the internal rate of return on both projects and make a recommendation on which one to accept. For further instructions on internal rate of return in Excel, see Appendix C.Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?
- Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Which of the two options would you choose based on the payback method?Fenton, Inc., has established a new strategic plan that calls for new capital investment. The company has a 9.8% required rate of return and an 8.3% cost of capital. Fenton currently has a return of 10% on its other investments. The proposed new investments have equal annual cash inflows expected. Management used a screening procedure of calculating a payback period for potential investments and annual cash flows, and the IRR for the 7 possible investments are displayed in image. Each investment has a 6-year expected useful life and no salvage value. A. Identify which project(s) is/are unacceptable and briefly state the conceptual justification as to why each of your choices is unacceptable. B. Assume Fenton has $330,000 available to spend. Which remaining projects should Fenton invest in and in what order? C. If Fenton was not limited to a spending amount, should they invest in all of the projects given the company is evaluated using return on investment?The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year ANMA67899 1 2 3 4 5 10 Investment Cash Inflow $ 1,000 $ 2,000 $ 4,000 $ 5,000 $ 30,000 $ 3,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $ 1,000 $ 1,000 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? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years
- The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1234567899 10 $ 30,000 $ 1,000 $ 3,000 $ 2,000 $ 4,000 $ 5,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $ 1,000 $ 1,000 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 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period yearsThe management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 58,000 $ 4,000 2 $ 8,000 $ 8,000 3 $ 11,000 4 $ 14,000 5 $ 17,000 6 $ 15,000 7 $ 13,000 8 $ 11,000 9 $ 10,000 10 $ 10,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large?Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 2 3 4 5 6 7 8 9 10 Investment $ 54,000 $ 7,000 Cash Inflow $ 5,000 $ 10,000 $ 16,000 $ 17,000 $ 20,000 $ 18,000 $ 16,000 $ 14,000 $ 13,000 $ 13,000 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? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Determine the payback period of the investment. Note: Round your answer to 1 decimal place. Payback period years
- The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 15,000 $ 1,000 2 $ 8,000 $ 2,000 3 $ 2,500 4 $ 4,000 5 $ 5,000 6 $ 6,000 7 $ 5,000 8 $ 4,000 9 $ 3,000 10 $ 2,000 Required: 1. Determine the payback period of the investmentThe management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 61,000 $ 3,000 2 $ 5,000 $ 6,000 3 $ 12,000 4 $ 13,000 5 $ 16,000 6 $ 10,000 7 $ 8,000 8 $ 10,000 9 $ 9,000 10 $ 9,000 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? REQUIRED 1 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period ______ yearsThe management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Cash Inflow 1 Investment $ 78,000 $ 5,000 $ 5,000 $ 10,000 $ 12,000 1234567890 10 Required: $ 15,000 $ 18,000 $ 16,000 $ 14,000 $ 12,000 $ 11,000 $ 11,000 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. es Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) period years Required 2 >