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Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $243,000 and will yield the
Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $243,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 2 years, and it requires a 10% 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 $ 47,800 53,700 76,200 94,300 125,600 UWNE 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 Required Required | 2 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback period answer to 1 decimal place.) Year Cash inflow (outflow) $(243,000) Cumulative Net Cash Inflow (outflow) 10 Payback period = Complete this question by entering your answers in the tabs below. Required Required Required 1 1 2 3 Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Year Cash inflow (outflow) Table factor Present Value of Cash Flows Cumulative Present Value of Cash Flows 0 $ (243,000) 2 Break-even time = Complete this question by entering your answers in the tabs below. Required Required Required Determine the net present value for this investment. Net present value
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