Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $260,000 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	Cash Flow
1	$123,300
2	92,600
3	70,100
4	52,900
5	48,900

Required:
1.	Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

Year	Cash inflow (outflow)	Cumulative Net Cash Inflow (Outflow)
0	$ (260,000
1
2
3
4
5
Calculate the portion of the year:
Numerator for partial year
Denominator for partial year
Payback period =

2.	Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place. Round all dollar amounts to nearest whole number.)

Year	Cash inflow (outflow)	Table factor	Present value of cash flows	Cumulative Present Value of Cash Flows
0	$ (260,000)
1
2		.8264
3		.7513
4		.6830
5		.6209
Calculate the portion of the year:
Numerator for partial year
Denominator for partial year
Break-even time =

3.	Determine the net present value for this investment.