Homework: Capital Budgeting Assignment i 12 2 points Skipped eBook 01 Hint Print References A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $106,000 and will generate $41,000 in net cash flows for five years. (Negative cumulative cash flows should be indicated with a minus sign.) Determine the break-even time for this equipment. Year Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Present Net Cash Flow x Value of 1 = at 10% 1.0000 = $ 0.9091 = 0.8264 = 0.7513 = 0.6830 = 0.6209 = $ (106,000) X 41,000 X 41,000 X 41,000 X 41,000 X 41,000 X Present Value of Net Cash Flows (Round break-even time answers to two decimal places.) Cumulative Present Value of Net Cash Flows (106,000) $ (106,000)