The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $30,000 $1,000 2 $ 3,000 $2,000 3 $4,000 4 $5,000 5 $8,000 6 $6,000 7 $4,000 8 $2,000 9 $1,000 10 $1,000 Required: 1

Accounting Nov 13, 2020

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Year Investment Cash Inflow 1 $30,000 $1,000 2 $ 3,000 $2,000 3 $4,000 4 $5,000 5 $8,000 6 $6,000 7 $4,000 8 $2,000 9 $1,000 10 $1,000
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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