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Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yield the following net cash flows.
Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yield the following net cash flows. Management requires a 10% return on investments. (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Year Net Cash Flow 1 3 5 Required: $ 47,000 $2,000 75,000 94,000 125,000 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. Note: Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place. Cumulative Net Year Net Cash Flows Cash Flows Initial investment $ (250,000) Year 1 47,000 Year 2 Year 3 Year 4 52,000 75,000 94.000 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. Note: Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place. Cumulative Net Year Net Cash Flows Cash Flows Initial investment $ (250,000) Year 1 47,000 Year 21 52,000 Year 3 75,000 Year 4 94,000 Year 5 125,000 Payback period= years Required 1 Required 2 > Required: $ 47,000 52,000 75,000 94,000 125,000 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. Note: Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place. Year Net Cash Flows Present Value of 1 at 10% Present Value of Net Cash Flows per Year Initial investment $ (250,000) Year 1 Year 2 Year 3 Cumulative Present Value of Net Cash Flows Year 41 Year 5 Break-even time= years Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yield the following net cash flows. Management requires a 10% return on investments. (PV of $1, FV of $1. PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year 1 Net Cash Flow 2 3 4 $ 47,000 52,000 75,000 94,000 Required: 125,000 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 Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yield the following net cash flows. Management requires a 10% return on investments. (PV of $1, EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Year Net Cash Flow 1 $ 47,000) 3 Required: 52,000 75,000 94,000 125,000 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 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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