The
management of Weimar, 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 | $38,000 | $2,000 |
| 2 | $6,000 | $4,000 |
| 3 | | $8,000 |
| 4 | | $9,000 |
| 5 | | $12,000 |
| 6 | | $10,000 |
| 7 | | $8,000 |
| 8 | | $6,000 |
| 9 | | $5,000 |
| 10 | | $5,000 |
|
| Required: |
| 1. |
Determine the payback period of the investment. (Round your answer to the nearest whole number.)
|
| Payback period | 6  years |
| 2. | Would the payback period be affected if the cash inflow in the last year were several times larger? |
| | |
| | No |
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