Problem 24-5A (Algo) Payback period, break-even time, and net present value LO A1, P1, P3 Salsa Company is considering an investment in technology to improve its operations. The investment costs $244,000 and will yield the following net cash flows. Management requires a 7% 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 1234 in 5 Net cash Flow $ 48,200 53,800 75,600 95,800 126,600 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. 4. Should management Invest in this project based on net present value? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period to 1 decimal place.) Cumulative Net Cash Year Net Cash Flows Flows Initial investment $ (244,000) Year 1 48,200 Year 2 53,800 Year 3 75,600 Year 4 95,800 Year 5 126,600 Payback period = |