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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016

EXERCISE 13–5 Payback Method [LO5]
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:
Â
Â
|
1 . . . . . . . |
$38,000 |
$2,000 |
|
2 . . . . . . . |
$6,000 |
$4,000 |
|
3 . . . . . . . |
 |
$8,000 |
|
4 . . . . . . . |
 |
$9,000 |
|
5 . . . . . . . |
 |
$12,000 |
|
6 . . . . . . . |
 |
$10,000 |
|
7 . . . . . . . |
 |
$8,000 |
|
8 . . . . . . . |
 |
$6,000 |
|
9 . . . . . . . |
 |
$5,000 |
|
10Â . . . . . . . |
 |
$5,000 |
Â
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 larger?
Â
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