11-5A (Static) Payback period, break-even time, and net present value LO A1, P1, P3 Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yieldi the following net cash flows. Management requires a 10% return on investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 2 3 4 Net Cash Flow $ 47,000 52,000 75,000 94,000 125,000 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. 4. Should management invest in this project based on net present value? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the net present value for this investment. Net present value 33,869 Year Net Cash Flow 1 2 3 4 5 $ 47,000 52,000 75,000 94,000 125,000 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. 4. Should management invest in this project based on net present value? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Year Net Cash Flows Present Value of 1 at 10% Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Cumulative Present Value of Net Cash Flows Present Value of Net Cash Flows per Year Initial investment S (250,000) 1.0000 $ (250,000) $ (250,000) Year 1 47,000 0.9091 42,728 (207,272) Year 2 52,000 0.8265 $ 42.978 (164,294) Year 3 75,000 0.7513 S 56,348 (107,946) Year 4 94,000 0.6830 S 64,202 (43,744) Year 5 125,000 0.6209 S 77.613 33,869 S 143,000 Break-even time= 46 years Year 12345 Net Cash Flow $ 47,000 52,000 75,000 94,000 125,000 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 4. Should management invest in this project based on net present value? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Perio to 1 decimal place.) Cumulative Year Net Cash Flows Net Cash Flows Initial investment $ (250,000) $ (250,000) Year 1 47,000 (203,000) Year 2 52,000 (151,000) Year 3 75,000 (76,000) Year 4 94,000 18,000 Year 5 125,000 143,000 $ 143,000 Payback period 3.8 years