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Determine the payback period of the investment

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Reference no: EM13509147

Tallahassee Company is considering an investment in a high-quality blueprint printer with the following cash flows:

Year

Investment

Cash Inflow

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

Required:

a) Determine the payback period of the investment.

b) Would the payback period be affected if the cash inflow in year 8 was $18,000?

 

Reference no: EM13509147

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