Payback periodpayson manufacturing is considering an investment in a new automated manufacturing system. the new system requires an investment of $1,200,000 and either has: even cash flows of $300,000 per year orthe following expected annual cash flows: $150,000, $150,000, $400,000, $400,000, and $100,000.required: calculate the payback period for each case.

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?