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Year Investment Cash Inflow 1 $ 54,000 $ 4,000 2 $ 4,000 $ 8,000 3 $ 16,000 4 $ 17,000 5 $ 20,000 6 $
| Year | Investment | Cash Inflow |
|---|---|---|
| 1 | $ 54,000 | $ 4,000 |
| 2 | $ 4,000 | $ 8,000 |
| 3 | $ 16,000 | |
| 4 | $ 17,000 | |
| 5 | $ 20,000 | |
| 6 | $ 18,000 | |
| 7 | $ 16,000 | |
| 8 | $ 14,000 | |
| 9 | $ 13,000 | |
| 10 | $ 13,000 |
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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