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) Note: Use appropriate factor(s) from the tables provided. Year Net Cash Flow $ 47,000 12345 Required: 52,000 75,000 94,000 125,000 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 Net Cash Flows Determine the break-even time for this investment. Note: Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place. Year Cumulative Present Value of Net Cash Flows Present Value of 1 at 10% Initial investment $ (250,000) Year 1 Year 2 47,000 52,000 1.0000 0.9091 $ $ Present Value of Net Cash Flows per Year (250,000) 42,728 $ (250,000) (207,273) 0.8264 $ 42,973 Year 3 75,000 0.7513 $ 56,348 Year 4 94,000 0.6830 $ 64,202 Year 5 125,000 0.6209 $ 77,613 $ 143,000 Break-even time = 3.4 x years < Required 1 Required 3 >