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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
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 4 years, and it requires a 10% return on its Investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.) Period 1 2 3 4 5 Cash Flow $123, see 92,600 70, 800 53,500 47,100 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 payback period for this investment. (Round your Payback period answer to 1 decimal place. Enter cash outflows with a minus sign.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) 0 s (261.000) 1 2 3 4 5 Payback period 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 (outflow) Table factor Present Value of Cash Flows Cumulative Present Value of Cash Flows 0 $ (281.000) 1 2 0.8264 0.7513 3 4 0.8830 5 0.8200 Break-even time = 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
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