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The management of Unter Corporation, an architectural design firm, is considering an investment with the...

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Accounting

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

Year Investment Cash Inflow
1 $78,000 $5,000
2 $5,000 $10,000
3 $12,000
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. (Round your answer to 1 decimal place.)

2.

Would the payback period be affected if the cash inflow in the last year were several times as large?
Yes
No

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