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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
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 o 10\% return on investments, (PV of \$1, EV of S1, PVA of S1, and EVA of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Dotermine 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 imvest in this project based on net present value? Complete this question by entering your answers in the tabs below. Determine the payback period for this investment. (Enter cash outhows with a minus sign. Pound your Paybsck Period answer to 1 -decimal place.) Determine the payback period for this investment. (Enter cash outfows with a minus slan. Pound your Payback. Period answer to 1 decimal place.) 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. Determine the break-efin time for this investment. (Enter cash outflows with a minus-sign. Round your break-even time answer to 1 decimal place.) 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. Determine the net present value for this investment
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