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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

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Answer #1

Total Investment = $31,000 + $4,000 = $35,000

YearCash inflowCummulative cash inflow
1$2,000$2,000
2$4,000$6,000
3$8,000$14,000
4$9,000$23,000
5$12,000$35,000

Payback period = 5 years.


answered by: gavin
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