Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lentes 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

image text in transcribed
image text in transcribed
image text in transcribed
Lentes 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 of 2 years, and it requires a return on its investments PV or $1. PV of $1. PVA of $1 and FVA of 5 (Use appropriate factor(s) from the table provided.) Period Cash Flow 1 $124.ee 92,9ee 70,800 4 52,400 5 47,400 2 3 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. Required 1 Required 2 Required Determine the payback period for this investment. (Round your Payback period answer to 1 decimal place. Enter cash outflows with a minus sign.) Year Cash inflow Toutowi (256,000 Cumulative Net Cash Inflow outflow 5 1 3 4 5 Payback period Required 2 > somework Lentes 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 of 2 years, and it requires a return on its investments PV of $1 PV of 51 PVA of $1. and FVA of 5:1 (Use appropriate factor(s) from the table provided.) Period Cash Flow 1 $124,000 2 92,900 70,800 52,400 5 47,400 3 4 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. Required 1 Required 2 Required 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 foutflow Table factor Present Value of Cash Flows Cumulative Present Value of Cash Flows 5 0266.000) 1 O 2 3 085735 07930 07350 5 06806 $ 5 $ 266.000) Break even te Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $266,000 and willeld the following expected cash flows. Management requires Investments to have a payback period of 2 years, and it requires a 8% return on its investments (PV of $1 FV of $1. PVA of $1, and FVA of 31) (Use appropriate factor(s) from the table provided.) 2 Period Cash Flow $124,000 92,900 70,80 52,400 5 47,400 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. Required 1 Required 2 Required Determine the net present value for this investment Nepresente

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

Step: 3

blur-text-image

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

Quality Audits For Improved Performance

Authors: Dennis R. Arter

2nd Edition

0873892631, 978-0873892636

More Books

Students also viewed these Accounting questions

Question

Write the preorder and postorder traversal of the following tree:

Answered: 1 week ago