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Salsa Company is considering an investment in technology to improve its operations. The investment costs $254,000 and will yield the following net cash flows.

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Salsa Company is considering an investment in technology to improve its operations. The investment costs $254,000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 2 3 4 5 Net cash Flow $ 48,900 52,300 76,200 94,100 125,700 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. 4. Should management invest in this project based on net present value?

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