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Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $259,000 and will yield the
Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $259,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 8% 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 $47,700 53,100 75,700 95,200 125,200 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 1Required 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.) Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) Year S (259,000) Payback period
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