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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?

Yes

OR

No

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