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Salsa Company is considering an investment in technology to improve its operations. The investment costs $259,000 and will yield the following net cash flows.
Salsa Company is considering an investment in technology to improve its operations. The investment costs $259,000 and will yield the following net cash flows. Management requires a 9% return on investments. (PV of $1. FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Year Net cash Flow $ 48,600 3 12345 Required: 53,000 76,100 95,400 125,300 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 answer to 1 decimal place.) Year Net Cash Flows Cumulative Net Cash Flows Initial investment $ (259,000) Year 1 Year 2 48,600 53,000 Year 3 76,100 Var & Os ann! 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 P to 1 decimal place.) Year Net Cash Flows Cumulative Net Cash Flows Initial investment $ (259,000) Year 1 48,600 Year 2 53,000 Year 3 76,100 Year 4 95,400 Year 5 125,300 Payback period= Required 1 Required 2 > 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 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 Year Net Cash Flows of 1 at 9% Present Value of Net Cash Flows per Year Cumulative Present Value of Net Cash Flows Initial investment $ (259,000) Year 1 Year 2 Year 3 Year 4 Year 5 Break-even time= years 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 net present value for this investment. Net present value Quiau company sa convening on niveaument in technology to move to the TIG the following net cash flows. Management requires a 9% 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 2 3 4 5 Net cash Flow $ 48,600 53,000 76,100 95,400 125,300 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 I Should management invest in this project based on net present value? Should management invest in this project based on net present value?
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