Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Not sure how to do this. Sentinel Company Is considering an investment in technology to Improve its operations. The Investment will require an Initial outlay
Not sure how to do this.
Sentinel Company Is considering an investment in technology to Improve its operations. The Investment will require an Initial outlay of $245,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 2 years, and it requires a 8% return on Investments. (PV of $1, EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the table provided.) Period cash Flow $ 48,980 52, 308 75, 180 96, 080 125, 180 Required: 1. Determine the payback perlod 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 answer to 1 decimal place. Year Cash inflow Cumulative Net Cash (outflow) Inflow (outflow) D 5 (245,000) 1 18,900 52,300 CO N 75, 100 4 96,000 5 125, 100 Payback period =Sentinel Company is considering an investment in technology to Improve its operations. The Investment will require an Initial outlay of $245,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 2 years, and it requires a 8% return on investments. (PV of $1, EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the table provided.) Period Cash Flow 1 $ 48,980 52, 308 75, 108 96, 080 125, 108 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 break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Present Value of Cumulative Year Cash inflow Table factor (outflow) Cash Flows Present Value of Cash Flows 0 245,000) 2 3 0 Break-even time =Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $245,000 and will yield the following expected cash ows. Management requires investments to have a payback period of2 years, and it requires a 8% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1} (Use appropriate factorls} from the table provided.) Period Cash F low 1 $ 48,963 2 52,389 3 25,189 4 96,863 5 125,169 Required: 1. Determine the payback period for this investment. 2. Determine the brea k-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 3 Determine the net present value for this investment.Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started