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1-4 please perations. The investment will sus. Management requires Problem 26-5B Payback period, break- even time, and net present value P1 A1 Aster Company is

1-4 please image text in transcribed
perations. The investment will sus. Management requires Problem 26-5B Payback period, break- even time, and net present value P1 A1 Aster Company is considering an investment in technology to improve its operations. The inves require an initial outlay of $800,000 and yield the following expected cash flows. Management investments to have a payback period of two years, and it requires a 10% return on its investments Period 1 Period 2 Period 3 Period 4 $300,000 Cash flow ...... $350,000 $400,000 $450,000 Check (1) Payback period, 2.4 years 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. Analysis Component 4. Should management invest in this project? Explain

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