Problem 24-6A Payback period, break-even time, and net present value LO P1, A1 Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $250,000 and will yield the following expected cash flows. Management requires investments to have a payback period of three years, and it requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Period Cash Flow 1 $125,000 2. 94,000 3 75,000 4 52,080 5 47,000 Hom 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. Requried 1 Required 2 Required 3 1 decimal nlace Enter cash Complete this question by entering your answers in the tabs below. Requried 1 Required 2 Required 3 Determine the payback period for this investment. (Round your Payback Period answer to 1 decimal pl outflows with a minus sign. Year Cash inflow (outflow) 0 $ (250,000) 125,000 Cumulative Net Cash Inflow (outflow) $ (250.000 (125.000) (31.000) 44 000 1 2 94,000 3 4 75.000 52.000 47.000 96.000 5 143.000 $ 143.000 Calculate the payback period: Payback occurs between year. and year 0 Payback period = Required 2 > Requried 1 Required 2 Required 3 Determine the break-even time for this investment. (Round your Payback period answer to 1 outflows with a minus sign.) Year Cash inflow (outflow) Table factor Present Value of Cash Flows Cumulative Present Value of Cash Flows 0 $ 1.0000 $ $ (250.000) 125.000 94.000 6A (250.000) 113.638 1 0.9091 $ 2 0.8264 $ es 77.682 (250,000) (136,363) (58,680) (2,332) 33.184 62,366 3 75,000 0.7513 $ 56,348 4 52.000 $ 0.6830 0.6209 35,516 29,182 $ 5 47,000 $ 143,000 Calculate the break even time: Break-even time occurs between year. and year. 0 Break-even time