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Need help fixing what's in red Salsa Company is considering an investment in technology to improve its operations. The investment costs $252,000 and will yield
Need help fixing what's in red
Salsa Company is considering an investment in technology to improve its operations. The investment costs $252,000 and will yield the following net cash flows. Management requires a 8% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 2 HmL Net cash Flow $ 48,800 52,600 76,400 94,500 126,100 3 4 5 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 3 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period ans to 1 decimal place.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) (252,000 Initial investment S (252,000) 48,800 Year 1 (203,200) Year 2 52,600 (150,600) (74,200) Year 3 76,400 Year 4 20,300 94,500 126,100 Year 5 146,400 $ 146,400 Year 5 126,100 146,400 $ 146,400 Calculate the payback period: Payback occurs between year: 30 and year: 4 Calculate the portion of the year: Numerator for partial year Denominator for partial year 0 C 0.9 74,200 85,824 X years $ Payback period FILME 3.8 years
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