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the zinger corporation is considering aj investment that has the followinf data.

ID: 2491610 • Letter: T

Question


the zinger corporation is considering aj investment that has the followinf data.


the management of uter coporation an archicetural design firm is considering an investment with the following cash flows.
1. determine the paybacm period of the investment.
2. would the payback period be affected if the cash inflow in the last year were several times as large?

Time remining: 42641 16 ignore Income lexes in diis problem The 2nger Corporation k consiceng an invactment net has me fclowing deta Chsh inthows occur senty treougnoun the year The peycock period s mentis: Round your answer to 1 decmal place O 3 years O 34 yeana

Explanation / Answer

Answer:

16. 3.4 Year

17.

Solution (17) 1 year Investment Cash Inflow Commulative Cash Inflow 1 52000 4000 4000 2 6000 8000 12000 3 16000 28000 4 17000 45000 5 20000 65000 6 18000 83000 7 16000 99000 8 14000 113000 9 13000 126000 10 13000 139000 58000 Payback period= 4+13000/20000=4.65 years 2 Payback period is not affected if the cash flow in the last year several time large.