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 investment

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...
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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 investment

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