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Payback Method The management of Deitrich Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash
Payback Method
The management of Deitrich 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 $28,000 $2,000
2 $4,000 $3,000
3 $6,000
4 $8,000
5 $9,000
6 $8,000
7 $6,000
8 $5,000
9 $4,000
10 $4,000
Required:
Determine the payback period of the investment.
Would the payback period be affected if the cash inflow in the last year was several times larger?
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