Homework answers / question archive / The management of Deitrich Inc

The management of Deitrich Inc

Finance

Share With

The management of Deitrich 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  $66,000  $5,000 

2  $6,000 $10,000

3 $20,000 

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. (Round your answer to the next whole number.)

2.Would the payback period be affected if the cash inflow in the last year was several times as large?   

 Yes or No