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PV of $1 TableFV of $1 TablePVA of $1 TableFVA of $1 Table

Salsa Company is considering an investment in technology to improve its operations. The investment costs $251,000 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 (Use appropriate factor(s) from the tables provided.) 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. 4. Should management invest in this project based on net present value? Complete this question by entering your answers in the tabs below. Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) 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.) Determine the net present value for this investment. Should management invest in this project based on net present value? Should management invest in this project based on net present value? Table B.1* Present Value of 1 p=1/(1+i)n years from today? Using the factors of n=12 and i=5% (12 semiannual periods and a semiannual rate of 5\%), the factor is 0.5568 . You would need to invest $2,784 today ( $5,000 0.5568 ). Table B. 2 Future Value of 1 f=(1+i)n the factors of n=20 and i=2%(20 quarterly periods and a quarterly interest rate of 2%), the factor is 1.4859. The accumulated value is $4,457.70 ( $3,0001.4859). Table B. 3 Present Value of an Annuity of 1 p=[11/(1+i)n]/i annual interest rate of 9% ? For ( n=10,i=9% ), the PV factor is 6.4177. $2,000 per year for 10 years is the equivalent of $12,835 today ( $2,0006.4177 ). Table B. 4 Future Value of an Annuity of 1 f=[(1+i)n1]/i annual interest rate of 8% ? For (n=6,i=8%), the FV factor is 7.3359.$4,000 per year for 6 years accumulates to $29,343.60 ( $4,0007.3359)