The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
1 answer:
Answer:
4.5 years
No
Explanation:
The table showing the cash flows was a little bit unclear. I found a more clear table here : https://www.chegg.com/homework-help/questions-and-answers/management-unter-corporation-architectural-design-firm-considering-investment-following-ca-q11983509
The table is attached.
The payback period measures how long it takes for the amount invested in a project to be recouped from the cummulative cash flow.
The total amount invested is $68,000. This amount would be recouped from the cumulative cash flow.
The total investment of $68,000 is recouped between the fourth and fifth year. It is between the fourth and fifth year the cumulative cash flow becomes postive.
The payback period is 4.5 years.
If the cash inflow of the last year is increased, it would have no impact on the payback period because the investment has already been gotten back.
I hope my answer helps you.
You might be interested in
Answer:
The appropriate solution is "$2.91". A further explanation is given below.
Explanation:
Seems that the given question is incomplete. Below is the attachment of the full problem.
According to the question,
Common dividend,
= 509.83
Shares outstanding,
= 175
Now,
The dividend per share will be:
=
On substituting the values, we get
=
=
or,
=
