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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $71,000 $6,000
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $71,000 $6,000 2 $4,000 $12,000 3 $21,000 4 $22,000 5 $25,000 6 $23,000 7 $21,000 8 $19,000 9 $18,000 10 $18,000
Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.)
2. Would the payback period be affected if the cash inflow in the last year were several times as large?
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