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 $105,000 2 555,000 205,000 3 355,000 4 475,000 5 505,000 6 595,000 7 590,000 8 295,000 9 255,000 10 255,000 A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places. fill in the blank 1 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 $105,000 2 555,000 205,000 3 355,000 4 475,000 5 505,000 6 595,000 7 590,000 8 295,000 9 255,000 10 255,000 A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places. fill in the blank 1 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The management of Kawneer North America is considering investing in a new facility and the following
| Year | ||
| 1 | $1,900,000 | $105,000 |
| 2 | 555,000 | 205,000 |
| 3 | 355,000 | |
| 4 | 475,000 | |
| 5 | 505,000 | |
| 6 | 595,000 | |
| 7 | 590,000 | |
| 8 | 295,000 | |
| 9 | 255,000 | |
| 10 | 255,000 |
A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places.
fill in the blank 1 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.
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