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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
| 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 | $ | 60,000 | $ | 4,000 | ||
| 2 | $ | 3,000 | $ | 8,000 | ||
| 3 | $ | 16,000 | ||||
| 4 | $ | 17,000 | ||||
| 5 | $ | 20,000 | ||||
| 6 | $ | 18,000 | ||||
| 7 | $ | 16,000 | ||||
| 8 | $ | 14,000 | ||||
| 9 | $ | 13,000 | ||||
| 10 | $ | 13,000 | ||||
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| Required: |
| 1. | Determine the payback period of the investment. (Round your answer to the next whole number.) |
| 2. | Would the payback period be affected if the cash inflow in the last year was several times as large? |
multiple choice
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