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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 $42,000 $3,000

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

Year Investment Cash Inflow
1 $42,000 $3,000
2 $ 5,000 $6,000
3 $12,000
4 $14,000
5 $16,000
6 $15,000
7 $13,000
8 $11,000
9 $10,000
10 $10,000

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?

Yes
No

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