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Thursday, 2 August 2012

The management of Weimar, Inc., a civil engineering design company, is considering an investment

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 correct  years  

2. Would the payback period be affected if the cash inflow in the last year were several times larger?
   
  No correct

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