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Exercise 11-1 Payback Method [LO11-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 2

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Exercise 11-1 Payback Method [LO11-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 2 4 Investment Cash Inflow $4,000 $8,000 $9,000 $10,000 $13,000 $11,000 $14,000 $12,000 $11,000 $11,000 $69,000 $9,000 10 Required 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Yes 0

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