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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 $56,000 $2,000

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

Year Investment Cash Inflow
1 $56,000 $2,000
2 $6,000 $4,000
3 $8,000
4 $9,000
5 $12,000
6 $10,000
7 $8,000
8 $6,000
9 $5,000
10 $5,000

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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