The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
YearInvestmentCash Inflow1$ 58,000$ 4,0002$ 8,000$ 8,0003 $ 11,0004 $ 14,0005 $ 17,0006 $ 15,0007 $ 13,0008 $ 11,0009 $ 10,00010 $ 10,000
Required:
Determine the payback period of the investment.
Would the payback period be affected if the cash inflow in the last year were several times as large?