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
|
$71,000
|
56.000
|
|
2
|
54,000
|
$12,000
|
|
3
|
|
521.000
|
|
4
|
|
522.000
|
|
5
|
|
525.000
|
|
6
|
|
523,000
|
|
7
|
|
521.000
|
|
8
|
|
$19.000
|
|
9
|
|
$18,000
|
|
10
|
|
518.000
|
Required:
1. Determine the payback period of the investment. (Round up your answer to the next whole number.)
2. Would the payback period be affected if the cash inflow in the last year were several times larger?
Yes/No