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Salsa Company is considering an investment in technology to improve its operations. The investment costs $253,000 and will yield the following net cash flows. Management
Salsa Company is considering an investment in technology to improve its operations. The investment costs $253,000 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] {Use appropriate factoris) from the tables provided.) Net cash Flow $ 47, 900 53,800 76,500 94,400 125,600 Year UllthNI-l 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. Required 1 Required 2 Required 3 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) Initial investment $ (253.000) Payback period = Required 2 > Salsa Company is considering an investment in technology to improve its operations. The investment costs $253,000 and will yield the following net cash flows. Management requires 310% return on investments. {PV of $1, FV of $1, PVA of $1, and FVA of $1] {Use appropriate factor(s) from the tables provided.) Net cash Flow $ 47, 900 53,800 76,500 94,400 125,600 Year UllthNI-l 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. Required 1 Required 2 Required 3 Determine the break-even time for this investment. (Enter cash outows with a minus sign. Round your break-even time answer to 1 decimal place.) Initial investment 5 (253,000) YEar2 Year 3
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