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Weimar, Inc. Managerial Analysis

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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:

Year Investment Cash Inflow
1 $60,000 $2,000
2 $4,000 $4,000
3 $8,000
4 $9,000
5 $12,000
6 $10,000
7 $8,000
8 $5,000
9 $4,000
10 $4,000

Required:
1.

Determine the payback period of the investment. (Round your answer to the nearest whole number).

Payback period years

2. Would the payback period be affected if the cash inflow in the last year were several times larger?

No.

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Solution Summary

Your tutorial is in Excel (attached, click in cells to see computations) and created a schedule to show you how to find the payback period.

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