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The management of Weimar, Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows: Year
The management of Weimar, Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows: |
Year | Investment | Cash Inflow |
1 | $53,000 | $3,000 |
2 | $3,000 | $6,000 |
3 | $14,000 | |
4 | $15,000 | |
5 | $18,000 | |
6 | $16,000 | |
7 | $14,000 | |
8 | $12,000 | |
9 | $11,000 | |
10 | $11,000 | |
Required: | |
1. | Determine the payback period of the investment. (Round up your answer to the next whole number.) |
Payback period | years |
2. | Would the payback period be affected if the cash inflow in the last year were several times larger? | ||||
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