Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $262,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 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

Cash Flow

1

$123,500

2

92,800

3

70,600

4

52,100

5

48,600

Determine the payback period for this investment. (Round your answer to 1 decimal place.)

Year	Cash inflow (outflow)	Cumulative Net Cash Inflow (outflow)
0	$(262,000)
1
2		0
3		0
4		0
5		0
			0
Payback period =

Determine the break-even time for this investment. (Round your answer to 1 decimal place.)

Year	Cash inflow (outflow)	Table factor	Present Value of Cash Flows	Cumulative Present Value of Cash Flows
0	$(262,000)
1
2		0.8264	$0	0
3		0.7513	$0	0
4		0.6830	$0	0
5		0.6209	$0	0
	$-262,000
			0
Break-even time =

Determine the net present value for this investment.

Net present value