Question
3 The management of Weimar, Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows:
3
The management of Weimar, Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows: |
Year | Investment | Cash Inflow |
1 | $60,000 | $2,000 |
2 | $4,000 | $4,000 |
3 |
| $8,000 |
4 |
| $9,000 |
5 |
| $12,000 |
6 |
| $10,000 |
7 |
| $8,000 |
8 |
| $5,000 |
9 |
| $4,000 |
10 |
| $4,000 |
Required: | |
1. | Determine the payback period of the investment. (Round your answer to 1 decimal place.) |
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2. | Would the payback period be affected if the cash inflow in the last year were several times larger? Circle or highlight your answer.
Yes
No | |||||
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