Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $244,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 9% 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

$ 47,500

2

53,200

3

76,300

4

95,400

5

125,200

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	$(244,000)
1
2
3
4
5
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	$(244,000)
1
2
3
4
5
Break-even time =

3.	Determine the net present value for this investment.