Lenitnes Company is considering an Investment in technology to Improve its operations. The Investment will require...

Transcribed Image Text:

Lenitnes Company is considering an Investment in technology to Improve its operations. The Investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years, and It requires a 8% return on Its 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 $123,500 2 92,800 3 70,300 4 53,900 5 48,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the payback period for this investment. (Round your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) 0 S (266,000) 1 2 3 4 5 Payback period < Required 1 Required 2 > Lenitnes Company is considering an Investment in technology to improve its operations. The Investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years. and It requires a 8% return on Its Investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.) Period 1 Cash Flow $123,500 92,800 2 3 70,300 4 53,900 5 48,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the break-even time for this investment. (Round your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign.) Cash inflow Year Table factor (outflow) Present Value of Cash Flows Cumulative Present Value of Cash Flows 0 $ (268,000) 1 2 3 4 5 Break-even time= 0.8573 0.7938 0.7350 0.6806 < Required 1 Required 3 > Lenitnes Company is considering an Investment in technology to Improve its operations. The Investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years. and It requires a 8% return on Its 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 2 $123,500 92,800 3 70,300 4 53,900 5 48,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the net present value for this investment. Net present value < Required 2 Required 3 > Lenitnes Company is considering an Investment in technology to Improve its operations. The Investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years, and It requires a 8% return on Its 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 $123,500 2 92,800 3 70,300 4 53,900 5 48,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the payback period for this investment. (Round your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) 0 S (266,000) 1 2 3 4 5 Payback period < Required 1 Required 2 > Lenitnes Company is considering an Investment in technology to improve its operations. The Investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years. and It requires a 8% return on Its Investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.) Period 1 Cash Flow $123,500 92,800 2 3 70,300 4 53,900 5 48,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the break-even time for this investment. (Round your Payback Period answer to 1 decimal place. Enter cash outflows with a minus sign.) Cash inflow Year Table factor (outflow) Present Value of Cash Flows Cumulative Present Value of Cash Flows 0 $ (268,000) 1 2 3 4 5 Break-even time= 0.8573 0.7938 0.7350 0.6806 < Required 1 Required 3 > Lenitnes Company is considering an Investment in technology to Improve its operations. The Investment will require an initial outlay of $266,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 4 years. and It requires a 8% return on Its 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 2 $123,500 92,800 3 70,300 4 53,900 5 48,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the net present value for this investment. Net present value < Required 2 Required 3 >