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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
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 $105,000 1 $1,900,000 2 550,000 200,000 3 360,000 4 480,000 515,000 600,000 595,000 8 300,000 9 245,000 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?
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