Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $269,000 and will yield the

Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $269,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 4 years, and it requires a 8% 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.)

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.image text in transcribed

4 Completely entering Lentes Company is considering an investment in technology to improves operations. The investment will require an initial day of $269.000 and will yield the following eccted cash flow. Menagement requires envestments to have payback period of years. and it requires a return on investments.EVESLEVES ESL and EVA ESS (Use appropriate factors from the table provided) 25 5222,00 79,1 52, : 1 Required 1. Determine the payback period for this investment 2. Determine the time for the bestment 3. Determine the net present value for this investment Complete this question by entering your answers in the tabs below. Midd 3 Determine the pack period for this investment. (Round your ideer miflow with Curre Cash w 5 269.00 + 123.000 2 3 100 + 52.200 5 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 Intlow (outfiow! Table factor Present Value of Cumulative Present Cash Flows Value of Cash Flows 5 (269.000) 0 1 2 3 4 5 0 0 0.85735 079335 0.7350 5 0.68065 0 0 0 0 0 0 5 (269 000) Braak oven time

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Nonfinancial Managers

Authors: Gene Siciliano

2nd Edition

0071824367, 978-0071824361

More Books

Students also viewed these Finance questions

Question

6. What are some of the advantages and disadvantages of ESOPs?

Answered: 1 week ago