Problem 24-5A Payback period, break-even time, and net present value LO P1, A1 Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $242,000 and will yield the following expected cash flows, Management requires investments to have a payback period of 3 years, and it requires a 9% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1 (Use appropriete factor(s) from the table provided.) Period Cash Flow $ 47,900 52,400 76,500 95,400 126,700 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 3 Required 1 Required 2 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Perlod answer to 1 decimal place.) Cumulative Net Cash Inflow (outflow) Cash inflow Year (outflow) (242,000) 3. 2. 52,400 76,500 95,400 126,700 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 answer to 1 decimal place.) Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) Year (242,000) Payback perlod Requied 1 Required 2 > 52,400 76,500 95,400 126,700 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 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.) Cumulative Present Value of Cash Flows Present Value of Cash Flows Cash inflow (outflow) Table factor Year (242,000) 4. Break even time = Required 3> ( Required 1 Problem 24-5A Payback period, break-even time, and net present value LO P1, A1 Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $242,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 9% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1 (Use appropriate foctor(s) from the table provided.) Period Cash Flow $ 47,900 52,400 76,500 95,400 126,700 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 2 Required 3 Required 1 Determine the net present value for this investment. Net present value
