Extra credit#4

Salsa Company is considering an investment in technology to improve its operations. The investment costs $256,000 and will yield the following net cash flows. Management requires a 9% 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 Net cash Flow $ 48,000 52,700 76,500 95,400 125,600 Required: 1. Determine the payback period for this invest ent. 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 Period answer to 1 decimal place.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) Initial investment $ (256,000) Year 1 Year 2 Year 3 Year 4 Year 5 Year (outflow) Inflow (outflow) Initial investment $ (256,000) Year 1 Year 2 Year 3 Year 4 Year 5 Payback period 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 $ (256,000) Year 1 Year 2 Year 3 Year 4 Year 5 Break-even time = Required 1 Required 2 Required 3 Determine the net present value for this investment. Net present value