EB2.

LO 11.1Boxer Production, Inc., is in the process of considering a flexible manufacturing system that will help the company react more swiftly to customer needs. The controller, Mick Morrell, estimated that the system will have a 10-year life and a required return of 10% with a net present value of negative $500,000. Nevertheless, he acknowledges that he did not quantify the potential sales increases that might result from this improvement on the issue of on-time delivery, because it was too difficult to quantify.

If there is a general agreement that qualitative factors may offer an additional net cash flow of $150,000 per year, how should Boxer proceed with this investment?

EB4.

LO 11.2Assume a company is going to make an investment in a machine of $825,000 and the following are the cash flows that two different products would bring. Which of the two options would you choose based on the payback method?

EB6.

LO 11.2The management of Ryland International is considering investing in a new facility and the following cash flows are expected to result from the investment:

1. What is the payback period of this uneven cash flow?
2. Does your answer change if year 6s cash inflow changes to $920,000?

EB8.

LO 11.3You put $600 in the bank for 3 years at 15%.

1. 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 two and continue to calculate all the way to the end of the third year.
2. Use the future value of $1 table in Appendix B and verify that your answer is correct.

EB10.

LO 11.3You have been depositing money into an account yearly based on the following investment amounts, rates and times. What is the value of that investment account at the end of that period?

what's missing?

here are the cash flows for 4 and 6.

Id like to add that this topic is accounting, not finance

EB4. LO 11.2 Assume a company is going to make an investment in a machine of $825,000 and the following are the cash flows that two different products would bring. Which of the two options would you choose based on the payback method? Option A, Product A $245,000 195,000 295,000 245,000 Option B. Product B $225,000 345,000 250,000 225,000 EB5. LO 11.2 A grocery store is considering the purchase of a new refrigeration unit with an initial investment of $412,000, and the store expects a feturn of $100,000 in year one, $72,000 in years two and three, $65,000 in years four and five, and $38,000 in year six and beyond, what is the payback period? EB6. LO 11.2 The management of Ryland International is considering investing in a new facility and the following cash flows are expected to result from the investment: Cash Inflow $ 700,000 $200,000 Cash Outflow 2,100,000 Year 1 2 3 4 5 6 7 8 400,000 260,000 360,000 260,000 800,000 480,000 400,000 420,000 420,000 10 A. What is the payback period of this uneven cash flow? B. Does your answer change it year 6's cash inflow changes to $920,000