The 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 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
$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
Determine the payback period of the investment.
Transcribed Image Text:The 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 Determine the payback period of the investment.
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