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Universal Electronics Corporation is considering the construction of a new production facility in Tennessee that has an estimated initial cost att 0 of $5,000,000. This

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Universal Electronics Corporation is considering the construction of a new production facility in Tennessee that has an estimated initial cost att 0 of $5,000,000. This production facility is expected to provide after-tax 3. Now assume that Universal Electronics consaders building its new production facility in Wyoming rather than Tennessee. These two projects are mutually exclusive, as the firm can only afford to construct one nerating cach inflowe in Yeare 1 through 4 as followe Year 1 2 3 4 After-Tax Cash Inflow: $1,800,000 $1,900,000 $700,000 SI 900 All cash inflows are assumed to occur evenly throughout the year (i.e., assume 1/365" of each year's cash inflow occurs per day for each day of the year) 1. What is the Payback Period for this proposed construction project in Tennessee? 2. Assume that the management of Universal Electronics Corporation has set its maximum acceptable payback period at 3.5 years. Given this information, should the Tennessee project described above for which you calculated the payback period in Question #1 be approved? Why or why not? new production facility. The proposed production facility in Wyoming has an initial costo $6,500,000. This production facility is expected to provide after-tax operating cash inflows in Years 1 through 4 as follows: Year 1 2 3 4 Aller-Tax Cash inflow: $2,200,000 $2,000,000 $800,000 $1.900.000 All cash inflows are assumed to occur evenly throughout the year old for thigher / 365" of each year's casti inflow occurs per day for each day of the year) What is the payback period for this project involving the construction or -production facility in Wyoming? Given that the proposed production facilities are mutually exclusive, which project - the Tennessee project or the Wyoming project -- should be approved based on your payback period calculations? Why

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