Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment, this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $94.000 and is expected to generate an additional $45,000 In cash flows for 5 years. A bank will make a $94.000 loan to the company at a 12% interest rate for this equipment's purchase. Use the following table to determine the break even time for this equipment All cash flows occur at year-end. (PV of $1. FV of $1. PVA of $1, and EVA O S1) (Use appropriate factor(s) from the tables provided. Cumulative net cash outflows must be entered with a minus sign. Round your present volue factor to 4 decimals, Round your answers to whole dollars. Round "Break even time" answer to 1 decimal place.) Chart Values are based on % Year Cash Inflow Outllow) PV Factor Present Value Cumulative Present Value of Inflow (Outflow) 0 $ (94.000) 10000 $ (94.000) 5 (94.000) 1 2 3 4 5 ecimal place.) Chart Values are Based on: % Present Value Cumulative Present Value of Inflow (Outflow) Cash Inflow (Outflow) Year X PV Factor $ (94,000) 1.0000 (94.000) $ 0 $ (94,000) 111 11 1 N ILIB 3 3 11 4 6 5 Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes The customer would have his or her foot scanned by digital computer equipment, this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $112,000 and is expected to generate an additional $44.000 in cash flows for five years A bank will make a $112,000 loan to the company at a 15% Interest rate for this equipment's purchase Compute the recovery time for both the payback period and break-even time (PV of $1. FV of $1. PVA of S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Payback Period Break even time Compute the recovery time for the payback period. Payback Porod Choose Numerator: Choose Denominator: Payback Period Payback period mo Break even time > Payback Period Break even time Compute the recovery time for the break-even time. (Cumulative net cash outflows must be entered with a minus sign. your Break-even time answer to 1 decimal place... Chart Values are Based on: = Year Cash Inflow (Outflow) PV Factor Cumulative Present Value Present Value of Inflow (Outflow) 0 $ (112,000) 10000 - $ (112,000) 5 (112,000) 1 2 3 4 5