Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $258,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 2 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	$ 47,800
2	52,400
3	76,900
4	94,700
5	127,000

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.)

Year	Cash inflow (outflow)	Cumulative Net Cash Inflow (outflow)
0	$(258,000)
1
2		0
3		0
4		0
5		0
				0
Payback period =

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.)

Year	Cash inflow (outflow)	Table factor	Present Value of Cash Flows	Cumulative Present Value of Cash Flows
0	$(258,000)
1
2
3				0
4				0
5				0
				0
Break-even time =

3.

Determine the net present value for this investment

Net present value