(Answered) Exercise - payback method the management of unter

Accounting

Exercise - Payback Method

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Year	Investment	Cash Inflow
1	$53,000	$3,000
2	$3,000	$6,000
3		$14,000
4		$15,000
5		$18,000
6		$16,000
7		$14,000
8		$12,000
9		$11,000
10		$11,000

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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