Question: The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 5

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Year Investment Cash Inflow
1 $ 59,000 $ 5,000
2 $ 9,000 $ 10,000
3 $ 20,000
4 $ 21,000
5 $ 24,000
6 $ 22,000
7 $ 20,000
8 $ 18,000
9 $ 17,000
10 $ 17,000
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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