ECHT 16 Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $241,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 8% return on investments. Pv. of $1. EV of $1. PVA of S1, and EVA of 51 (Use appropriate factors) from the table provided) Period Cash Flow 1 $ 47,300 53,300 3 75,500 4 96.000 5 126,100 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Perlod answer to 1 decimal place.) Year Cumulative Net Cash Inflow (outflow) Cash inflow (outflow) $ (241,000) 47.300 0 1 (193,700) Sav 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 Cumulative Net Cash Inflow (outflow) 0 (193,700) 2 Cash inflow (outflow) $ (241.000) 47.300 53,300 75,500 96,000 126,100 3 4 5 0 Payback period = 16 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 0 $ (241,000) 1 2 3 0 4 0 5 0 0 Break-even time = Period 1 2 3 4 5 Cash Flow $ 47,300 53,300 75,500 96,000 126,100 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. 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
