Question
Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $249,000 and will yield the
Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $249,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 4 years, and it requires a 7% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.) Period Cash Flow 1 $ 47,100 2 52,500 3 75,700 4 94,400 5 125,700 Required: 1. Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) 2. Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place. Round all dollar amounts to nearest whole number.) 3. Determine the net present value for this investment
The part I'm not understanding is for number 1: How do I calculate the cash inflow(outflow) for years 0-5 and what is the cumulative Net Cash Inflow(Outflow)
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