Lenitnes Company is considering an investment in technology to Improve its operations. The Investment will require an initial outlay of $250,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of three 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 tables provided.) Period Cash Flow 1 $125,000 2 94,000 3 75,000 4 52,000 5 47,000 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. 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. Requried 1 Required 2 Required 3 Determine the payback period for this investment. (Round your Payback period answer to 1 de with a minus sign.) Cumulative Net Year Cash inflow (outflow) Cash Inflow (outflow) 0 S (250,000) s (250,000) 1 125,000 (125,000) 2 94,000 (31,000) 3 75,000 44,000 4 52,000 96.000 5 47,000 143.000 $ 143,000 Calculate the payback period: Payback occurs between year: Calculate the portion of the year. Numerator for partial year Denominator for partial year and year 0 Payback period = Requr 1 Required 2 > 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. Requried 1 Required 2 Required 3 Determine the break-even time for this investment. (Round your Payback period answer to 1 outflows with a minus sign.) Year Cash inflow (outflow) Present Value of Cumulative Table factor Present Value of Cash Flows Cash Flows 1.0000 $ (250,000) s (250,000) 0.9091 S 113,638 0.8264 S 77.682 0.7513 56,348 0.6830 S 35,516 0.6209 S 29.182 0 $ (250,000) 1 125,000 2 94,000 3 75,000 4 52,000 5 47,000 S 143,000 Calculate the break even time: Break-even time occurs between year: Calculate the portion of the year. Numerator for partial year Denominator for partial year and year 0 Break-even time = 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 ta Requried 1 Required 2 Required 3 Determine the net present value for this investment. Net present value
