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Sentinel Company is considering an investment in technology to improve its operations. The Investment will require an initial outlay of $240,000 and will yield the
Sentinel Company is considering an investment in technology to improve its operations. The Investment will require an initial outlay of $240,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years, and it requires a 9% return on investments (py of $1. EV of 1. PVA of St. and EVA of S1 (Use appropriate factor(s) from the table provided) Per Canon 1 $ 47,000 2 53.700 3 75,000 4 94,900 5 126.400 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 3 Determine the payback period for this investment (Enter cash outlows with a minus sign. Round your pavace tom Cash inflow foutflow Cumulative Net Cash now outflow 3 1240.000) Required 1 Required 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.) Book Year Cash Inflow (outflow) Cumulative Net Cash Inflow (outflow) 0 $ (240,000) 1 Print 2 0 3 0 erences 4 0 0 5 0 Payback period Required 2 > Required 1 Requireit 2 Required 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 1240,000) 1 2 -3 0 2 D 5 a 0 Break-even time
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