Homework answers / question archive / The management of Unter Corporation, an architectural design firm, is considering an investment 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

The management of Unter Corporation, an architectural design firm, is considering an investment 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

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The management of Unter Corporation, an architectural design firm, is considering an investment 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 1 decimal place.) 
Payback period 
? 
I years 
2. Would the payback period be affected if the cash inflow in the last year was several times as large? 
0 Yes 0 No