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

Year Investment Cash Inflow

1 $15,000 $1,000

2 $ 8,000 $2,000

3 $2,500

4 $4,000

5 $5,000

6 $6,000

7 $5,000

8 $4,000

9 $3,000

10 $2,000

Required:

1. Determine the payback period of the investment.

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