Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $247,000 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 1 $ 48,200 2 53,200 3 75,900 4 94,600 5 126,800 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 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.)

Year	Cash inflow (outflow)	Cumulative Net Cash Inflow (outflow)
0	$(247,000)
1		0
2	53,200	53,200
3	75,900	129,100
4	94,600	223,700
5	126,800	350,500
	$103,500
Calculate the payback period:
Payback occurs between year:		4	and year:	4
Calculate the portion of the year:
Numerator for partial year		$247,000	1.4	years
Denominator for partial year		$177,300
Payback period =		0.7	years

etermine 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	$(247,000)
1	48,200	0.9090	$43,814
2	53,200	0.8260	$43,943
3
4				0
5				0
			0
Break-even time =

Determine the net present value for this investmen

Determine the net present value for this investmen