Problem:
Kilebrew Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $2,400,000 and either has:
Even cash flows of $200,000 per year or
The following expected annual cash flows: $300,000, $300,000, $800,000, $800,000, and $200,000.
Required:
Question: Calculate the payback period for each case.
Note: Please explain comprehensively and give step by step solution.