#11

Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yield the following net cash flows. Management requires a 10% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 2 3 4 5 ur A WNH Net Cash Flow $ 47,800 52,000 75,000 94,000 125,000 Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment. 3. Determine the net present value for this investment. Required 1 Required 2 Required 3 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) Initial investment $ (250,000) Year 1 Year 2 Year 3 Year 4 Year 5 Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) $ (250,000) Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Payback period Required 1 Required 2 Required 3 Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Year Cash inflow (outflow) Table factor Present Value of Cash Flows Cumulative Present Value of Cash Flows Initial investment (250,000) Year 1 Year 2 Year 3 Year 4 Year 5 Requirea: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment 3. Determine the net present value for this investment. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the net present value for this investment. Net present value