Homework Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $242,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 2 years, and it requires a 8% return on investments. (PV of $1. FV of $1. PVA of S1, and FVA or $1 (Use appropriate factor(s) from the table provided.) 1 2 Period Cash Flow $ 48,400 52,700 3 76,400 4 95,600 5 127,000 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 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback period answer to 1 decimal place.) 2 Year Cash Inflow Cumulative Net Cash fout how how loutlow 0 3 024200005 (242,000) 1 48.400 (193.600) 52.700 (1409000 76.400 (54,500) 4 95 God 31.100 5 127.000 156.100 158.100 Calculate payback period: Payback cours between year Calculate the portion of the year and year Denominator for partial year Payback period Required 2 > Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $242.000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 2 years, and it requires a 8% return on investments. PV of $1. FV of S1. PVA of $1 and PVA of $1 (Use appropriate factor(s) from the table provided.) Period Cash Flow 1 $ 48,400 2 52,700 3 76,400 4 95,600 5 127,000 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 break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Cumulative Year Cash inflow Table factor Present Value of Present Value of foutflow) Cash Flows Cash Flows 0 $ 120.000 1 2 3 0 0 0 4 5 Break-even time Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $242,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 2 years, and it requires a 8% return on investments (PV of $1. FV of $1. PVA of $1 and FVA of 51) (Use appropriate factor(s) from the table provided.) 1 Period Cash Flow $ 48,400 2 52,700 3 76,400 4 95,600 5 127,000 Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment 3. Determine the nel 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
