EA6. LO 11.2 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 2 ' $1.900.000 550,000 $100,000 200,000 0.000 480,000 4 $ . 7 " 10 $10,000 600,000 590.000 300,000 250,000 250,000 A. What is the payback period of this uneven cash flow? B. Does your answer change if year 10's cash inflow changes to $600,000? EA7 LO 11.2 A mini-mart needs a new freezer and the initial investment will cost $300.000 Incremental revenues, including cost savings, are $200,000, and incremental expenses, including depreciation, are $125,000. There is no salvage value. What is the accounting rate of return (ARR)? EAB LO 11.3 You put $250 in the bank for 6 years at 1296 A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year tivo and continue to calculate all the way to the end of the fifth year B. Use the future value of 51 table in box and venly that your answer isc