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Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $266,000 and will yield the
Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires investments to have a payback period of3 years, and it requires a 10% return on its investments. IPV of $1, FV of $1, PVA of $_'l, and FVA of $_1] [Use appropriate factos] from the table provided.) Period Cash Flour 1 $123 , see 2 92,433 3 M, 333 4 52,433 5 48, 333 Required: 1. Determine the payback period for this investment. 1 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 labs 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 outows with a minus sign.) Payback period =| I Required 2 ) Complete this question by entering your answers in the labs helnw- Required] Requiredz Required3 Determine the break-even time for this investment. {Round 1your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign.) n Breakeven time = :I Complete this queson by entering wur answers in the hubs heluw. Required 1 Required 2 Required 3 Determine the net present value for this investment. 4: Required 2
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