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.…

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 $500,00

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 $500,00

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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