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

Year	Investment	Cash Inflow
1	$73,000	$6,000
2	$6,000	$12,000
3		$20,000
4		$22,000
5		$25,000
6		$23,000
7		$21,000
8		$19,000
9		$18,000
10		$18,000

Required:

1.

Determine the payback period of the investment. (Round your answer to 1 decimal place.)

Payback period

years

2.

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

	Yes
	No