Question: hts 02:53:57 eBook Problem 11-5A (Static) Payback period, break-even time, and net present value LO A1, P1, P3 Salsa Company is considering an investment
hts 02:53:57 eBook Problem 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 yield the following net cash flows. Management 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 tables provided.) Year 1 Net Cash Flow $ 47,000 52,000 75,000 94,000 125,000 Print Deferences 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? 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 Period answer to 1 decimal place.) Year Net Cash Flows Inibal investment $ (250,000) Year 1 47,000 Year 2 52.000 Year 3 75.000 Year 4 04,000 Year 5 125,000 Payback period Cumulative Net Cash Flows years Required 2 >
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