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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 | $ 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
1. Determine the payback period of the investment.
2. Would the payback period be affected if the cash inflow in the last year was several times larger?
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