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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 $15,000 $1,000
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. (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? | ||||
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