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

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?

Year 1... 2. 3.. 4 5.. 6.. 7 8 8 9.. 10. Investment Cash Inflow $15.000 $1,000 $ 8.000 $2,000 $2,500 $4,000 $5,000 $6,000 $5,000 $4.000 $3,000 $2,000