question archive The management of Deitrich Inc
Subject:AccountingPrice:3.87 Bought7
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 | $ | 51,000 | $ | 4,000 | ||
2 | $ | 8,000 | $ | 8,000 | ||
3 | $ | 16,000 | ||||
4 | $ | 17,000 | ||||
5 | $ | 20,000 | ||||
6 | $ | 18,000 | ||||
7 | $ | 16,000 | ||||
8 | $ | 14,000 | ||||
9 | $ | 13,000 | ||||
10 | $ | 13,000 | ||||
Required: |
1. |
Determine the payback period of the investment. (Round your answer to the next whole number.) |
2. Would the payback period be affected if the cash inflow in the last year was several times as large? Yes No
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