Savas HW: Ch 24. Capital Budgeting 6 9 Exercise 24-18 Comparing payback and BET LO P1, A1 1 Dans Heels a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes The customer would have his or her foot scanned by digital computer equipment, this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $114,000 and is expected to generate an additional $45,000 in cash flows for five years. A bank will make a $114.000 loan to the company at a 10% interest rate for this equipment's purchase Compute the recovery time for both the payback period and break even time PV of $1. FV of $1. PVA of St. and EVA of Sp (Use appropriate foctor(s) from the tables provided.) Book Complete this question by entering your answers in the tabs below. PPT Payback Perion Break even time References Compute the recovery time for the payback period, Choose to Anunt cash flow Payback Period Choose Denominato Annual net cash flow Payback Period Payback period 0 Break even time > materials to provide in cash flows for five years. A bank will make a $114,000 loan to the company at a 10% interest rate 10 a Compute the recovery time for both the payback period and break-even time. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Us appropriate foctor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Payback Period Break even time Compute the recovery time for the break-even time. (Cumulative net cash outflows must be entered with a minus sign. Round your Break-even time answer to 1 decimal place.) Chart Values are Based on: % Year Cash Intlow (Outflow) PV Factor Present Value Cumulative Present Value of Intlow (Outflow) 0 $ (114.000) 10000 $ (114000) $ (114,000) 1 2 3 4 5