The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Required:

1. Determine the payback period of the investment.

2. Would the payback period be affected if the cash inflow in the last year were several times as large?

nvestment Cash I $52,000 $ 6,000 8 Year I niloW 0 $ 4,000 8,000 $16,000 $17,000 $20,000 $18,000 $16,000 $14,000 $13,000 $13,000 10