Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $259,000 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		$	48,500
2			52,300
3			76,100
4			95,600
5			125,300

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.

1.

Year	Cash Inflow (outflow)	Cumulative Net Cash Inflow (Outflow)
0	$(259,00)
1
2
3
4
5
Payback Period=

2.

Year	Cash Inflow (outflow)	Table Factor	Present Value of Cash Flows	Cumulative Present Value of Cash Flows
0	$(259,000)
1
2
3
4
5
Break Even time=

3.

Net Present Value