Exercise 13-5 Payback Method [LO5]

Please show details on how you arrived at your answers as this is very helpful. Thank you!

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	$53,000	$3,000
2	$3,000	$6,000
3		$14,000
4		$15,000
5		$18,000
6		$16,000
7		$14,000
8		$12,000
9		$11,000
10		$11,000

Required:
1.	Determine the payback period of the investment. (Round your answer to the nearest whole number.)

Payback period

years

2.

Would the payback period be affected if the cash inflow in the last year were several times larger?

	No
	Yes