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Determine the payback period of the investment

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Reference no: EM131931572

Question - The management of Deitrich 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

$61,000

$3,000

2

$5,000

$6,000

3

 

$12,000

4

 

$13,000

5

 

$16,000

6

 

$10,000

7

 

$8,000

8

 

$10,000

9

 

$9,000

10

 

$9,000

Required:

1. Determine the payback period of the investment.

2. Would the payback period be affected if the cash inflow in the last year was several times as large?

Reference no: EM131931572

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