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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 $ 60,000

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 60,000 $ 2,000 2 $ 4,000 $ 4,000 3 $ 8,000 4 $ 9,000 5 $ 12,000 6 $ 10,000 7 $ 8,000 8 $ 5,000 9 $ 4,000 10 $ 4,000 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?

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