Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I really need help and a full explanation. I have no idea how to do this. Lenitnes Company is considering an investment in technology to

I really need help and a full explanation. I have no idea how to do this.

image text in transcribedimage text in transcribedimage text in transcribed
Lenitnes Company is considering an investment in technology to Improve its operations. The investment will require an Initial outlay of $261,000 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 its investments. (PV of $1. EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the table provided.) Period cash Flow 1 $123, 780 92, 900 70, 700 52, 606 in + 47, 600 Required: 1. Determine the payback perlod 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. (Round your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign. Year Cash inflow Cumulative Net outflow) Cash Inflow (outflow) 0 5 (261,000) 1 3 Payback period = Lenitnes Company is considering an investment in technology to Improve its operations. The investment will require an Initial outlay of $261,000 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 Its investments. (PV of $1. EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the table provided.) Period cash Flow $123, 700 92, 900 70, 700 52, 606 47, 600 Required: 1. Determine the payback perlod 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. (Round your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign.) Year Cash inflow Table factor Present Value of Cumulative Present (outflow) Cash Flows Value of Cash Flows 0 $ (261,000) 1 2 0.8573 5 0 3 0.7938 S 0 4 0.7350 S 5 0 6806 5 0 S (261,000) Break-even time = Lenitnes Company is considering an Investment In technology to Improve its operations. The Investment will require an Initial outlay of $261,000 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 Its Investments. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the table provided.) Period Cash Flow $123, 700 92, 900 70, 780 52, 600 47, 600 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

9th Edition

111970958X, 9781119709589

More Books

Students also viewed these Accounting questions

Question

=+e. Storytelling present product in a story.

Answered: 1 week ago