The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment:YearCash OutflowCash Inflow1$1,900,000 $95,000 2545,000 205,000 3 365,000 4 480,000 5 510,000 6 600,000 7 585,000 8 305,000 9 250,000 10 255,000 A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places._____ yearsB.Does your answer change if year 10's cash inflow changes to $500,000?The answer for part A _____ if the cash inflow in year 10 changes to $500,000. The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment:Year Cash OutflowCash Inflow1.$1,900,000$95,000545,000205,0003365,0004480,000510,0006600,0007585,000305,0009250,00010255,000A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places.yearsB. Does your answer change if year 10's cash inflow changes to $500,000?The answer for part Av if the cash inflow in year 10 changes to $500,000.

Payback period is the capital budgeting technique used to evaluate an investment proposal.…

Answered: The management of Kawneer North America…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6EA: The management of Kawneer North America is considering investing in a new facility and the following...

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The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment:

Year	Cash Outflow	Cash Inflow
1	$1,900,000	$95,000
2	545,000	205,000
3		365,000
4		480,000
5		510,000
6		600,000
7		585,000
8		305,000
9		250,000
10		255,000

A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places.

_____ years

B.Does your answer change if year 10's cash inflow changes to $500,000?

The answer for part A _____ if the cash inflow in year 10 changes to $500,000.

The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment:
Year Cash Outflow
Cash Inflow
1.
$1,900,000
$95,000
545,000
205,000
3
365,000
4
480,000
510,000
6
600,000
7
585,000
305,000
9
250,000
10
255,000
A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places.
years
B. Does your answer change if year 10's cash inflow changes to $500,000?
The answer for part A
v if the cash inflow in year 10 changes to $500,000.

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