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just need help on the blank parts in question 2 (second picture). Sentinel Company is considering an investment in technology to improve its operations. The
just need help on the blank parts in question 2 (second picture).
Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $257,000 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, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.) Period Cash Flow 48,500 53,100 76,500 95,200 5 125,300 Required: 1. Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) Cash Cumulative Net inflow Year Cash Inflow (outflow) (outflow) 0 (257,000) 1 48,500 48,500 2 53,100 101,600 3 178,100 76,500 4 95,200 273,300 5 125,300 398,600 141,600 Calculate the payback period: 3 and year: 4 Payback occurs between year: Calculate the portion of the year: 0.8 years Numerator for partial year 78.900 95,200 Denominator for partial year 3.8 years Payback periodStep by Step Solution
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