Salsa Company is considering an investment in technology to improve its operations. The investment costs $249,000...

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Salsa Company is considering an investment in technology to improve its operations. The investment costs $249,000 and will yield the following net cash flows. Management 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 tables provided.) Year Net cash Flow $48,800 53,800 75,700 94,400 126,000 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? Answer is not complete. 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 answer to 1 decimal place.) Year Net Cash Flows Cumulative Net Cash Flows 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 answer to 1 decimal place.) Net Cash Year Flows Initial investment S (249,000) S Year 1 48,800 Year 2 53,800 Cumulative Net Cash Flows (241,000) 192,200 187,200x Year 3 75,700 165,300x Year 4 94,400 146,600 Year 5 126,000 115,000 $ 149,700 Payback period= 3.9 years Required 1 Required 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the net present value for this investment. Net present value tering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should management invest in this project based on net present value? Should management invest in this project based on net present value? Salsa Company is considering an investment in technology to improve its operations. The investment costs $249,000 and will yield the following net cash flows. Management 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 tables provided.) Year Net cash Flow $48,800 53,800 75,700 94,400 126,000 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? Answer is not complete. 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 answer to 1 decimal place.) Year Net Cash Flows Cumulative Net Cash Flows 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 answer to 1 decimal place.) Net Cash Year Flows Initial investment S (249,000) S Year 1 48,800 Year 2 53,800 Cumulative Net Cash Flows (241,000) 192,200 187,200x Year 3 75,700 165,300x Year 4 94,400 146,600 Year 5 126,000 115,000 $ 149,700 Payback period= 3.9 years Required 1 Required 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the net present value for this investment. Net present value tering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should management invest in this project based on net present value? Should management invest in this project based on net present value?

Answer rating: 100% (QA)

Inorder to evaluate the investment we need to calculate the present value of the net cash flows and ... View the full answer