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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
| Year | Investment | Cash Inflow |
| 1 | $ 68,000 | $ 7,000 |
| 2 | $ 8,000 | $ 14,000 |
| 3 | | $ 21,000 |
| 4 | | $ 22,000 |
| 5 | | $ 25,000 |
| 6 | | $ 23,000 |
| 7 | | $ 21,000 |
| 8 | | $ 19,000 |
| 9 | | $ 18,000 |
| 10 | | $ 18,000 |
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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