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Extra credit #4. Need help recise

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Salsa Company is considering an investment in technology to improve its operations. The investment costs $256,000 and will yield the following net cash flows. Management 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 tables provided.) Year 114 2 3 Net cash Flow $ 48,000 52,700 76,500 95,400 125,600 5 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) Year Cash inflow (outflow) Initial investment $ Cumulative Net Cash Inflow (outflow) $ (256,000) (208,000) (155,300) (78,800) 16,600 (256,000) 48,000 52,700 W Year 1 Year 2 Year 3 76,500 Year 4 95.400 142.200 Year 5 125,600 Year 2 52.700 Year 3 76.500 (155,300) (78,800) 16,600 Year 4 95,400 Year 5 125,600 142,200 $ 142,200 Calculate the payback period: Payback occurs between year: 3 and year: Calculate the portion of the year: Numerator for partial year Denominator for partial year $ 0.8 years SA GA 78,800 95,400 $ Payback period = 3.8 years Required 1 Required 2 Required 3 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.) Year Cash inflow (outflow) Table factor Present Value of Cash Flows $ 1.0000 Initial investment (256,000) 48,000 52,700 $ 0.9174 Year 1 Cumulative Present Value of Cash Flows $ (256,000) (211,965) (167,607) (108,534) (40,953) 40,674 0.8417 $ (256,000) 44,035 44,358 59,073 67,581 81,627 Year 2 0.7722 76,500 $ Year 3 0.7084 95,400 Year 4 0.6499 125,600 Year 5 $ 142,200 and year: 5 Calculate the break even time: Break-even time occurs between year: Calculate the portion of the year: Numerator for partial year Denominator for partial year $ 40,953 0.3 years $ 125,600 X Break-even time 4.3 x years